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Please solve problems 1,3,and 5 using excel and show the explanations and formulas. Since the margin requirement is 60 percent, you borrow (0.-4)(sso) $20 and
Please solve problems 1,3,and 5 using excel and show the explanations and formulas.
Since the margin requirement is 60 percent, you borrow (0.-4)(sso) $20 and put up S30. The gain on the stock is $20, but you have to pay interest of S2 (0.1 x $20) on the $20 you borrowed. The percentage return is (S20-$2)/$30-60.0%. 6. The loss is $20; the percentage return is ($20)/$50 -40%. 7. The gain is $20; the percentage return is $20/$50-40%. PROBLEMS 1. A stock sells for $10 per share. You purchase 100 shares for $10 a share (i.e., for $1,000), and after a year the price rises to $17.50. What will be the percentage return on your investment if you bought the stock on margin and the margin requirement Step by Step Solution
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