You purchase 700 shares of 2nd Chance Co. stock on margin at a price of $46. Your broker requires you to deposit $16,500. 1. Suppose
You purchase 700 shares of 2nd Chance Co. stock on margin at a price of $46. Your broker requires you to deposit $16,500. |
1. | Suppose you sell the stock at a price of $52. What is your return? What would your return have been had you purchased the stock without margin? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. Omit the "%" sign in your response.) |
With margin | % |
Without margin | % |
2. | What is your return if the stock price is $44 when you sell the stock? (Negative values should be indicated by a minus sign. Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. Omit the "%" sign in your response.) |
With margin | % |
Without margin | % |
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