Question
You have $42,000 to invest in Sophie Shoes, a stock selling for $100 a share. The initial margin requirement is 75 percent. Do not round
You have $42,000 to invest in Sophie Shoes, a stock selling for $100 a share. The initial margin requirement is 75 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 $110 a share and if it declines to $40 a share assuming you pay cash for the stock. Rate of return if the stock rises to $110 a share: % Rate of return if the stock declines to $40 a share: % Ignoring taxes and commissions, calculate your rates of return if the stock rises to $110 a share and if it declines to $40 a share assuming you buy it using maximum leverage. Rate of return if the stock rises to $110 a share: % Rate of return if the stock declines to $40 a share: %
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