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Problem 3 - 0 1 eBook Problem 3 - 0 1 You have $ 3 6 , 0 0 0 to invest in Sophie Shoes,
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You have $ to invest in Sophie Shoes, a stock selling for $ a share. The initial margin requirement is percent. Do not round intermediate calculations. Round your answers to two decimal places. Use a minus sign to enter negative values, if any.
a Ignoring interest and commissions, calculate your rate of return if the stock rises to $ a share and if it declines to $ a share, assuming you pay cash for the stock.
Rate of return if the stock rises to $ a share:
Rate of return if the stock declines to $ a share:
b Ignoring interest and commissions, calculate your rate of return if the stock rises to $ a share and if it declines to $ a share, assuming you buy the stock using maximum leverage.
Rate of return if the stock rises to $ a share:
Rate of return if the stock declines to $ a share:
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