Problem 4-01

You purchase 190 shares for $60 a share ($11,400), and after a year the price rises to $70. 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. 65 percent. Round your answer to one decimal place.

   %

3. 85 percent. Round your answer to one decimal place.

   %