Question
You have opened a margin account with $11,000 at your local brokerage firm. You instruct your broker to purchase 600 shares of Bison Corporation Stock,
You have opened a margin account with $11,000 at your local brokerage firm. You instruct your broker to purchase 600 shares of Bison Corporation Stock, which currently sells for $46 per share. Three months later, the stock is selling for $50 per share. Assume interest rate is 10% a year.
a. You close out your position after three months. What is your percentage rate of return?
b. What is your Effective Annualized Rate of Return?
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Personal Finance In Your 20s And 30s For Dummies
Authors: Eric Tyson
2nd Edition
9781119431411, 978-1119431411
