Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

You purchase 100 shares for $50/sh ($5000), and after a year the price falls to $40. What will the percentage return on your investment if

You purchase 100 shares for $50/sh ($5000), and after a year the price falls to $40. What will the percentage return on your investment if you bought the stock on margin and the margin requirement was 25%?

-80%

-26.7%

-40%

-25%

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

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

More Books

Students also viewed these Finance questions

Question

What is x after the following statements? int x = 1 ; x * = x + 1 ;

Answered: 1 week ago