Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

You purchased 300 shares of Company B's common stock on margin at $60 per share. Assume the initial margin is 60%, and the maintenance margin

You purchased 300 shares of Company B's common stock on margin at $60 per share. Assume the initial margin is 60%, and the maintenance margin is 30%. Assume the stock pays no dividend; ignore interest on margin. What would your rate of return be if you sell the stock at $45 per share?

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

Understanding Financial Risk Management

Authors: Angelo Corelli

1st Edition

0415746183, 978-0415746182

More Books

Students also viewed these Finance questions

Question

Find the length of the curve yF-Ia 1

Answered: 1 week ago

Question

answer must be in 100-200 words Define the term Gantt chart

Answered: 1 week ago

Question

Design a health and safety policy.

Answered: 1 week ago