Consider a levered investment in AMD stock. You put up $10,000 in capital to buy $20,000 of AMD stock, by borrowing $10,000 from your broker. Assuming AMD stock falls by 2% what dollar gain or loss do you experience on your $10,000 capital? Assume you can borrow money at a rate of 0% and there are no dividends.. With regard to question (2), what percent (%) return on your capital do you experience when AMD stock falls 2%

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1 Dollar Gain or Loss on 10000 Capital Lets calculate the value of the AMD stock after a 2 decrease ... View the full answer