Answered step by step
Verified Expert Solution
Question
1 Approved Answer
You decide to purchase 700 shares of the ARKK ETF using 50% margin. The current price of the ARKK ETF is $310 per share. Assume
You decide to purchase 700 shares of the ARKK ETF using 50% margin. The current price of the ARKK ETF is $310 per share. Assume that all interest rates are zero. If the price of the ARKK ETF falls to $280, what is the rate of return on your investment (assuming no distributions)? A) -19.36% B) -9.68% C) 19.41% D) 38.82%
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started