Question: 1.(Margin Trading) John Jones recently opened a margin account with the Evergreen Investment Company. Evergreen currently has a 50% initial margin requirement and a 30%

1.(Margin Trading) John Jones recently opened a margin account with the Evergreen Investment Company. Evergreen currently has a 50% initial margin requirement and a 30% maintenance margin. Mr. Jones initially purchases 1000 shares of Micro-Tech stock at $50 per share.What is the return in one year if the stock price is $55 and the financing cost is 4.0% per year? What if the stock price turns out to be $45?

The answer given is incorrect because solving it does not get 19.96% or -20.04%?

Evergreen Investment Company. Evergreen currently has a 50% initial margin requirement and

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