Question
URGENT! In 20 mins please! Please no need to solve and dont show the working, please just tell quickly if answer is A, B, C
URGENT! In 20 mins please! Please no need to solve and dont show the working, please just tell quickly if answer is A, B, C or D ASAP! JUST ANSWER THE OPTION! Thank you in advance!
You use 50% margin to purchase 500 shares of Microsoft that are currently selling at $100 per share. What will be your rate of return after 6 months if Microsoft is selling at $120? (Ignore any dividends and fees.)
a. The money you put in the investment is 500*100 =50000. The profit you get from the investment is (120-100)*500*50% = 5000. Your return is 5000/50000 =10%.
b. The money you put in the investment is 500*100*50% =25000. The profit you get from the investment is (120-100)*500 = 10000. Your return is 10000/25000 =40%.
c. The money you put in the investment is 500*100 =50000. The profit you get from the investment is (120-100)*500 = 10000. Your return is 10000/50000 =20%.
d. The money you put in the investment is 500*100*50% =25000. The profit you get from the investment is (120-100)*500*50% = 5000. Your return is 5000/25000 =20%.
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