Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

You purchase 90 shares for $50 a share ($4,500), and after a year the price falls to $45. Calculate the percentage return on your investment

You purchase 90 shares for $50 a share ($4,500), and after a year the price falls to $45. 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):

a) 20 percent. Use a minus sign to enter the amount as a negative value. Round your answer to one decimal place.

_________%

b) 65 percent. Use a minus sign to enter the amount as a negative value. Round your answer to one decimal place.

________%

c) 75 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

Financial Markets And Institutions

Authors: Frederic S. Mishkin, Stanley G. Eakin

7th Global Edition

0273754440, 9780273754442

More Books

Students also viewed these Finance questions