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You have $36,000 to invest in Sophie Shoes, a stock selling for $80 a share. The initial margin requirement is 65 percent. Do not round
You have $36,000 to invest in Sophie Shoes, a stock selling for $80 a share. The initial margin requirement is 65 percent. Do not round intermediate calculations. Round your answers to two decimal places. Use a minus sign to enter negative values, if any.
- Ignoring taxes and commissions, calculate your rates of return if the stock rises to $90 a share and if it declines to $50 a share assuming you pay cash for the stock.
Rate of return if the stock rises to $90 a share: %
Rate of return if the stock declines to $50 a share: %
- Ignoring taxes and commissions, calculate your rates of return if the stock rises to $90 a share and if it declines to $50 a share assuming you buy it using maximum leverage.
Rate of return if the stock rises to $90 a share: %
Rate of return if the stock declines to $50 a share: %
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