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You purchase 100 Shares of IBM on margin at $42 per share. Assume the initial margin is 50% and the maintenance margin is 35%. You
You purchase 100 Shares of IBM on margin at $42 per share. Assume the initial margin is 50% and the maintenance margin is 35%. You will get a margin call when the stock price drops to ____________.
$27.30 | ||
$21.20 | ||
$35.30 | ||
$32.30 |
You short-sell 200 shares of Bruce Wayne Inc. currently trading at $150 per share. Assuming no transaction costs, what is the maximum possible gain?
$15,000 | ||
$50 | ||
$30,000 | ||
Infinite |
If an investor requires a real return of 3% and the average inflation rate is 4%, what is the lowest acceptable return for the investor?
7% | ||
2.9% | ||
3% | ||
7.1% |
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