Practice question: Textbook question #25. Investor A makes a cash purchase of 100 shares of ABSC common stock for $55 a share. Investor Balso buys 100 shares of AB&C but uses margin. Exch holds the stock for one year, during which dividends of $5 a share are distributed Commissions are 2 percent of the value of a purchase or sales the margin requirement is 60 percent, and the interest rate is 10 percent annually on borrowed funds What is the percentage camed by cach investor if he or she sells the stock after one year for (a) 540, (b) $55, (c) 500, and (d) $707 or the margin requirement had been 40 percent what would have been the annual percentage retums? What conclusion do these percentage retums imply? Next - Previous