Two years ago, you bought 300 shares of Kayleigh Milk Co. for $30 a share with a
Question:
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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a Assuming that you pay cash for the stock This is ...View the full answer
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Related Book For
Investment Analysis and Portfolio Management
ISBN: 978-0538482387
10th Edition
Authors: Frank K. Reilly, Keith C. Brown
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