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Problem 3 Determine the average annual rate of return in the following investments. Assume that you buy $ 10,000 in stock in all four cases,

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Problem 3 Determine the average annual rate of return in the following investments. Assume that you buy $ 10,000 in stock in all four cases, and ignore interest and transaction costs in all your calculations, a) Buy a stock for $ 70 without margin and sell it two years later for $ 50. b) Buy a stock for $ 30 with 20 percent margin and sell it two years later for $ 45. c) Buy a stock for $ 40 with 70 per cent margin and sell it three years later for $ 25. d) Buy a stock for $ 25 without margin and sell it a year later for $ 49

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