Q2. Suppose you have purchased 1,000 BHP common stocks in Australia since August 2019.

Closing Price *

30 Aug 2019 = 36.29

30 Sept 2019= 36.72

31 Oct 2019= 36.20

29 Nov 2019= 38.23

31 Dec 2019= 38.92

31 Jan 2020= 39.40

28 Feb 2020= 33.60

31 March 2020= 28.98

30 April 2020= 32.35

29 May 2020= 34.64

30 June 2020= 35.82

31 July 2020= 36.75

Using the monthly closing prices to calculate:

b)The holding period rate of return from August 2019 to July 2020. (5 marks)

c)The holding period rate of return from August 2019 to July 2020, if you use a margin account with 40% of initial margin (ignore the interest paid on margin loans).(5 marks)

d)The holding period rate of return from August 2019 to July 2020 if you purchased only 500 BHP common stocks.(3 marks)