You purchase 50 shares for $70 a share ($3,500), and after a year the price falls...

 

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You purchase 50 shares for $70 a share ($3,500), and after a year the price falls to $63. What will be the percentage return on your investment if you bought the stock on margin and the margin requirement was 50 percent? (Ignore commissions, dividends, and interest expense.) Show ALL your work and calculations to get full credit. Show your answer as a percentage with one decimal place (i.e. 2.2% not 2.176 %). You purchase 50 shares for $70 a share ($3,500), and after a year the price falls to $63. What will be the percentage return on your investment if you bought the stock on margin and the margin requirement was 50 percent? (Ignore commissions, dividends, and interest expense.) Show ALL your work and calculations to get full credit. Show your answer as a percentage with one decimal place (i.e. 2.2% not 2.176 %).

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The question involves calculating the percentage return on an investment made using margin Heres how ... View the full answer