Question
Question 18: An investor buys $16,000 worth of a stock priced at $20 per share using 60% initial margin. The broker charges 8% on the
Question 18:
An investor buys $16,000 worth of a stock priced at $20 per share using 60% initial margin. The broker charges 8% on the margin loan and requires a 35% maintenance margin. The stock pays a $0.5-per-share dividend in 1 year, and then the stock is sold at $23 per share. What was the investor's rate of return?
- 28%
- 23.83%
- 19.67%
- 17.5%
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Euro Crash The Implications Of Monetary Failure In Europe
Authors: Brendan Brown
1st Edition
0230229107,0230274927
