Question
...Her broker charges her a 2.4% per annum. margin loan interest rate (meaning if she borrows $100 for 12 months, overall she has to pay
...Her broker charges her a 2.4% per annum. margin loan interest rate (meaning if she borrows $100 for 12 months, overall she has to pay back $102.4).....
Anna only cares about month-to-month price variation. Assume her broker assumes simple returns when calculating a monthly margin loan rate. What is the monthly margin loan rate?
(Does "assume simple returns" mean that simple interest rate? Hence is it 0.2%?)
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Personal Finance
Authors: E. Thomas Garman, Raymond E. Forgue
13th edition
1337099759, 978-1337516440, 1337516449, 978-1337099752
