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Margin $: Your margin account requires an initial margin of 50%, and a maintenance margin of 30%. You deposit $74,000 cash in a brokerage account
Margin $: Your margin account requires an initial margin of 50%, and a maintenance margin of 30%. You deposit $74,000 cash in a brokerage account and purchase stocks using all available margin and borrowing the rest from your broker. Later, the value of your stock holdings goes to $107,000. What is your dollar return?
$74,000 Gain
$33,000 Gain
$41,000 Loss
$41,000 Gain
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