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(SYou bought 200 shares of a stock when it was selling at $80.25. You invested $11,050 of your own money and borrowed $5,000 at an
(SYou bought 200 shares of a stock when it was selling at $80.25. You invested $11,050 of your own money and borrowed $5,000 at an annual rate of 5%. If the stock is selling at $110.00 one year later, what are the associated return on the asset and return on equity, respectively? Ignore taxes, commissions, and dividends. 27.47%, 28.29% 59.91%, 84.76% 84.76%, 59.91% 37.07%, 51.58% You bought 100 shares of a stock at $120 that is currently selling at $145. While you would like to sell the stock because it is expected to fall in price soon, you cannot do so. You could lock in your current profit without risk by doing the following: O There is no way to protect your profit without selling the stock at $145 now. O Short 100 shares of the same stock at $145. O Leverage your investment by buying 100 more shares on margin. Short 200 shares of the same stock at $145
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