Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

You purchase 90 shares for $70 a share ($6,300), and after a year the price falls to $65. Calculate the percentage return on your investment

You purchase 90 shares for $70 a share ($6,300), and after a year the price falls to $65. 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):

  1. 25 percent. Use a minus sign to enter the amount as a negative value. Round your answer to one decimal place.

    %

  2. 30 percent. Use a minus sign to enter the amount as a negative value. Round your answer to one decimal place.

    %

  3. 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

A Handbook Of Mutual Fund Investing

Authors: Barry G Dolgin

1st Edition

1456489704, 978-1456489700

More Books

Students also viewed these Finance questions

Question

explain group goals and how to use them,

Answered: 1 week ago

Question

What are Mergers ?

Answered: 1 week ago

Question

3. How has e-commerce transformed marketing?

Answered: 1 week ago