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You purchase 100 shares of a stock currently trading for $40 per share. a. Find the rate of return on your investment in one year
You purchase 100 shares of a stock currently trading for $40 per share. a. Find the rate of return on your investment in one year if the stock price is (i) $30, (ii) $35, (iii) $40, (iv) $45, (v) $50. b. In addition to investing your own money, suppose you borrow $4,000.00 at a rate of 10% per year to buy on margin. Find the rate of return on your investment in one year if the stock price is (i) $30, (ii) $35, (iii) $40, (iv) $45, (v) $50
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