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You went on margin 10-to-1. What return on the underlying investment will exactly double your equity? Write your answer out to three decimais; for example,
You went on margin 10-to-1. What return on the underlying investment will exactly double your equity? Write your answer out to three decimais; for example, write 25.2% as .252 or 6.1% as. 061. Answer: Doubling your equity means a return (for you) of + 100\%, Find out how much the margin magnifies your equity returns in this case and then see how.much of a return on the underiying asset you would need to get a 100% gain on your equity
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