Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Sep 07, 2024

You own capital $1000. You use buying on margin (borrow $1000) to buy stock at $20. Bank loan rate = 5%. After one year, stock

You own capital $1000. You use buying on margin (borrow $1000) to buy stock at $20. Bank loan rate = 5%. After one year, stock A price = $15. Your rate of return is?

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

Recommended Textbook for

The Economics Of Money Banking And Financial Markets

Authors: Frederic Mishkin

13th Global Edition

1292409487, 978-1292409481

More Books

Students also viewed these Finance questions

Question

★★★★★

A piston/cylinder arrangement contains air at 250 kPa, 300C. The 50-kg piston has a diameter of 0.1 m and initially pushes against the stops. The atmosphere is at 100 kPa and 20C. The...

Answered: 1 week ago

Question

★★★★★

A hierarchy chart tells you ___________. a. Which modules call other modules b. What tasks are to be performed within each program module c. When a module executes d. All of the above

Answered: 1 week ago

Question

★★★★★

=+16.11. Let f be a complex-valued function integrating to ref, r 0. From [(If(o)|- e-10f(@ ))u(du) = flfl du -r, deduce (16.30).

Answered: 1 week ago

Question

★★★★★

Richard Griffin and three other men owned a grain company called Bearhouse, Inc., which needed to borrow money. First National Bank was willing to loan $490,000, but it insisted that the four men...

Answered: 1 week ago

Question

★★★★★

The world knows the name Edward Snowden. He was the man who leaked highly classified documents from our nation s National Security Agency ( NSA ) and ended up fleeing to Russia. It was reported that...

Answered: 1 week ago

Question

★★★★★

Compute trend percentages for Elsie Snyder Realtors' net revenue and net income for the following five-year period, using 2013 as the base year. (Click the icon to view net revenue and net income for...

Answered: 1 week ago

Question

★★★★★

1. You are considering two possible marketing campaigns for a new product. The first marketing campaign requires an outlay next year of 2M, and then will pay 0.24M in all subsequent years. The second...

Answered: 1 week ago

Question

★★★★★

First consider whether a spinning cylinder could be an alternative for an airfoil in an aircraft. To study this, consider the classical symmetric NACA airfoil 0012. We discussed this airfoil in class...

Answered: 1 week ago

Question

★★★★★

QUESTION 2.21 (Comprehensive, inter vivos trust) During the 2021/22 tax year, Porter Chrystan created the Blind Trust, an inter vivos trust to provide services to his psychiatry practice. The net...

Answered: 1 week ago

Question

★★★★★

Montgomery Company has developed the following flexible budget formulas for its four overhead items: Overhead item Maintenance Fixed Cost Variable rate per direct labor hour $10,000 $ 3.00 Power $...

Answered: 1 week ago

Question

★★★★★

Following are the asset, liability, and equity items of Dumont Inc. at January 31, 2015, after its first month of operations. Required: = ASSETS LIABILITIES + EQUITY Cash $1,300 Bank Loan $8,000...

Answered: 1 week ago

Question

★★★★★

The leadership was only formally elected by the membership, and was often an appointed member of the bureaucracy, which in turn was dependent on upper levels of the bureaucracy.

Answered: 1 week ago

Question

★★★★★

it not being an object for purchase or sale, lease, gift or inheritance; and

Answered: 1 week ago

Question

★★★★★

property rights of control over the activity of the enterprise being exercised by the state bureaucracy, normally directly by the lower levels of the hierarchical bureaucracy.

Answered: 1 week ago

Previous Question Next Question