Problem 4-01

You purchase 120 shares for $50 a share ($6,000), and after a year the price rises to $60. Calculate the percentage return on your investment if you bought the stock on margin and the margin requirement was (ignore commissions, dividends, and interest expense):

1. 25 percent. Round your answer to one decimal place.

   %

2. 60 percent. Round your answer to one decimal place.

   %

3. 75 percent. Round your answer to one decimal place.

   %