Question
Robin sold 800 shares of a non-dividend paying stock this morning for a total of $29,440. She had purchased these shares on margin 12 months
Robin sold 800 shares of a non-dividend paying stock this morning for a total of $29,440. She had purchased these shares on margin 12 months ago at a cost per share of $35. The initial margin requirement on this stock is 60 percent and the maintenance margin is 30 percent. Robin also needs to pay loan rate of 3.0 percent. What is her total dollar return on this investment?
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The Risk Modeling Evaluation Handbook Rethinking Financial Risk Management Methodologies In The Global Capital Markets
Authors: Greg Gregoriou, Christian Hoppe, Carsten Wehn
1st Edition
0071663703, 978-0071663700
