Penny Bailey bought on margin 500 shares of South Beloit Inc. at $35 per share. The initial

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Penny Bailey bought on margin 500 shares of South Beloit Inc. at $35 per share. The initial margin requirement is 45% and the annual interest on margin loans is 12%. Over the next year the stock rises to $40. What is Penny's return on investment?

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Fundamentals of Investments

ISBN: 978-0132926171

3rd edition

Authors: Gordon J. Alexander, William F. Sharpe, Jeffery V. Bailey

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Question Posted: Mar 16, 2016 02:44 AM

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Penny Bailey bought on margin 500 shares of South Beloit Inc. at $35 per share. The initial

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Pennys initial investment in South Beloit is 17500 35 500 of ...View the full answer

Fundamentals of Investments

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