Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

You purchased 100 shares of a company for $83.33, and borrowed $5,000 of the original purchase from your broker on margin. Since then, the stock

You purchased 100 shares of a company for $83.33, and borrowed $5,000 of the original purchase from your broker on margin. Since then, the stock price has fallen by 20.0%. If your broker charges a 4.7% interest rate on margin accounts, what is your overall return? (Type your answer as a percentage, i.e. if the answer is -12.5%, type -12.5, not -0.125)

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_2

Step: 3

blur-text-image_3

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

ISE Essentials Of Investments

Authors: Zvi Bodie, Alex Kane, Alan Marcus

12th International Edition

1265450099, 9781265450090

More Books

Students also viewed these Finance questions

Question

1. How did this situation come about?

Answered: 1 week ago

Question

What is the cerebrum?

Answered: 1 week ago