Question
Margin Trading An investor opens her first brokerage account, and purchases 500 shares of Cisco shares at $24 per share. She borrows $5,000 from her
Margin Trading An investor opens her first brokerage account, and purchases 500 shares of Cisco shares at $24 per share. She borrows $5,000 from her broker to help pay for the purchase. The interest rate of the loan is 3.5%. What is the initial margin in her account when she first purchases the stock? If the price falls to $20 per share by the end of the year, what is the remaining margin in her account?If the maintenance margin requirement is 35%, will she receive a margin call? What is the rate of return on the investment if she sells the shares at the end of the year at $20 per share?
I know Part A: 58.33%
Part B: Chegg keeps getting the wrong answer. It is NOT ..
https://www.chegg.com/homework-help/questions-and-answers/margin-trading-investor-opens-first-brokerage-account-purchases-500-shares-cisco-shares-24-q14734855
Please Help. I have test and need major help explaining
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