Question: please give me the process while solving the problems! thx a lot 5. An investment fund produced a return of 45% during the 2.5 year

5. An investment fund produced a return of 45% during the 2.5 year period from January 1, 2017 to June 30, 2019. Which one of the following is the annual rate of return? A. 15.0% B. 16.0% C. 18.0% D. 45.0% E. 51.3% 25. An investor recently opened a brokerage account with $200,000 of cash and utilized the full margin borrowing capacity available through their broker. The investor borrowed their full capacity with an initial margin of 50%. They owe interest to the broker at 6% annually. The maintenance margin is 25%. The current market price of NEWC is $40.00. Compute their holding period return for 4 months assuming the price of NEWC is $42 at that time. A. 4.00% B. 8.0% C. 10.0% D. 12.0% E. 16.0%
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
