Question
Q8. Suppose you bought a security for $45. Two years later, you are able to sell the security for $57. What was your annualized return?
Q8. Suppose you bought a security for $45. Two years later, you are able to sell the security for $57. What was your annualized return?
Q14. You purchase 550 shares of ABC on margin at a price of $55. Your broker requires you to deposit $15,500. What is your margin loan amount, i.e. how much did you borrow?
a. $15,500 b. $14,750 c. $15750 d. $14,500
Q15. You purchase 550 shares of ABC on margin at a price of $55. Your broker requires you to deposit $15,500. What is the margin requirement?
Q17. Suppose you purchase 800 shares of stock at $61 per share with an initial cash investment of $24,400. The call money rate is 5 percent and you are charged a 1.5 percent premium over this rate. Ignore dividends. Calculate your return on this investment one year later if the price is $69.
a. 18.65% b. 26.23% c. 20.58% d. 19.73%
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