Two years ago, you bought 300 shares of Kayleigh Milk Co. for $30 a share with a

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Two years ago, you bought 300 shares of Kayleigh Milk Co. for $30 a share with a margin of 60 percent. Currently, the Kayleigh stock is selling for $45 a share. Assuming no dividends and ignoring commissions, compute

(a) The annualized rate of return on this investment if you had paid cash,

(b) Your rate of return with the margin purchase.

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Investment Analysis and Portfolio Management

ISBN: 978-0538482387

10th Edition

Authors: Frank K. Reilly, Keith C. Brown

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Question Posted: Dec 17, 2014 10:34 AM

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Two years ago, you bought 300 shares of Kayleigh Milk Co. for $30 a share with a

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a Assuming that you pay cash for the stock This is ...View the full answer

Investment Analysis and Portfolio Management

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