Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

You purchased the stock for $50 using a loan from the broker with the annual interest rate of 10%. If the initial margin is 40%

You purchased the stock for $50 using a loan from the broker with the annual interest rate of 10%. If the initial margin is 40% and the price of stock is still $50 after one year, what is your rate of return on investment in %? There is no dividend.

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

Personal Finance Building Your Future

Authors: Robert Walker, Kristy Walker

2nd Edition

0077861728, 9780077861728

More Books

Students also viewed these Finance questions