Problem 4-02

You purchase 120 shares for $70 a share ($8,400), and after a year the price falls 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. 15 percent. Use a minus sign to enter the amount as a negative value. Round your answer to one decimal place.

   %

2. 65 percent. Use a minus sign to enter the amount as a negative value. Round your answer to one decimal place.

   %

3. 85 percent. Use a minus sign to enter the amount as a negative value. Round your answer to one decimal place.

   %