Let's assume you're taking a long position for a stock. When the stock price goes up...

 

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Let's assume you're taking a long position for a stock. When the stock price goes up HPR with margin provides "----" return compared to HPR without margin; and when the stock price goes down HPR with margin provides "-----" loss compared to HPR without margin. greater; greater It depends on the initial margin. greater; lower lower; lower lower; greater Let's assume you're taking a long position for a stock. When the stock price goes up HPR with margin provides "----" return compared to HPR without margin; and when the stock price goes down HPR with margin provides "-----" loss compared to HPR without margin. greater; greater It depends on the initial margin. greater; lower lower; lower lower; greater

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When the stock price goes up the Holding Period Return HPR with margin is greater than the HP... View the full answer