Question: Chapter 2 Question 22 You've just opened a margin account with $20,000 at your local brokerage firm. You instruct your broker to purchase 500 shares

Chapter 2 Question 22 You've just opened a margin account with $20,000 at your local brokerage firm. You instruct your broker to purchase 500 shares of Landon Golf stock, which currently sells for $60 per share. Suppose the call money rate is 5% and your broker charges you a spread of 1.25% over this rate. You hold the stock for 6 months and sell at a price of $65 per share. The company paid a dividend of $0.25 per share the day before you sold your stock. 1) What is your total dollar return from this investment? 2) What is your effective annual rate of return

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