Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

You purchase 8 0 shares for $ 6 0 a share ( $ 4 , 8 0 0 ) , and after a year the

You purchase 80 shares for $60 a share ($4,800), and after a year the price falls to $55. Calculate the percentage return on your investment if you bought the stock on margin and the margin requirement was (ignore commissions, dividends, and interest expense):
20 percent. Use a minus sign to enter the amount as a negative value. Round your answer to one decimal place.
%
40 percent. Use a minus sign to enter the amount as a negative value. Round your answer to one decimal place.
%
80 percent. Use a minus sign to enter the amount as a negative value. Round your answer to one decimal place.
%

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

The Technology Procurement Handbook A Practical Guide To Digital Buying

Authors: Sergii Dovgalenko

1st Edition

1789662125, 978-1789662122

More Books

Students also viewed these Finance questions