You paid cash for $1,400 worth of stock a year ago. Today the portfolio is worth $2,134.

a.) What rate of return did you earn on the investment?

Remember: (Final Value Beginning Value) / Beginning Value

b.) Now suppose that you bought the same stock but bought it on margin. The initial margin requirement was 55%. Recalculate your rate of return, ignoring any interest due.

c.) Recalculate the rates of return for a cash purchase in the event that the stock is worth $950 today.

d.) Recalculate the rates of return for a margin purchase in the event that the stock is worth $950 today.