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Suppose Alyssa wants to purchase 800 shares of Desertfly stock at $60 per share through Kentucky Brokerage. The value of the shares is If Alyssa
Suppose Alyssa wants to purchase 800 shares of Desertfly stock at $60 per share through Kentucky Brokerage. The value of the shares is If Alyssa does not have enough funding to purchase the shares herself, and Kentucky Brokerage requires an initial margin of at least 60 percent, this amount, then Kentucky Brokerage would cover the remaining If the price of Desertfly's decreases to $50 per share, then the total value of Alyssa's shares is now brokerage firm , and as a result, her equity position is now, alyssa still owes the of the stock. If Kentucky Brokerage requires a maintenance margin of 40 percent, then Alyssa receive a margin call from Kentucky Brokerage. Alyssa sold the shares at the end of the year when the price dropped to $50 per share, then what would her 34.20 percent 31.67 percent 28.50 percent 25.34 percent If Alyssa was able to fund the entirety of the stock purchase herself and sold the shares at the end of the year when the price dropped to $50 per share, then what would her return on stocks purchased be? 16.50 percent 15.00 percent 14.25 percent 13.05 percent True or False: Based on your calculations, it can be concluded that purchasing stock on margin results in fewer losses if the stock price decreases. True False
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