Answered step by step
Verified Expert Solution
Question
1 Approved Answer
I just need help with the last one, thank you. Upside: No margin: >Purchase 100 shares @ $50 and sell them @ $70 in 1
I just need help with the last one, thank you.
Upside:
No margin:
>Purchase 100 shares @ $50 and sell them @ $70 in 1 year.
>Profit = $2000 & Return = 2000/5000 profit/initial investment
Margin:
>Purchase 200 shares @ $50 by borrowing $5000 at 9%.
>Sell 200 shares @ $70 in 1 year
>Profit = ?
>Return = ?
What if stock price goes to $30 instead of $70?
>No Margin:
On Margin:
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started