The price of a stock is $100 at the beginning of the year and $88 at...

 

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The price of a stock is $100 at the beginning of the year and $88 at the end of the year. If the stock paid a $2 dividend and inflation was 10%, what is the real holding-period return for the year? (Do NOT use approximation). (5 points) You purchased 100 shares of Apple common stock on margin at $100 per share. Assume the initial margin is 60% and the maintenance margin is 40%. (Assume the stock pays no dividends, and ignore interest on the margin loan.) (10 points) (a) At what price will you get a margin call? (b) What is your return when you get a margin call? The price of a stock is $100 at the beginning of the year and $88 at the end of the year. If the stock paid a $2 dividend and inflation was 10%, what is the real holding-period return for the year? (Do NOT use approximation). (5 points) You purchased 100 shares of Apple common stock on margin at $100 per share. Assume the initial margin is 60% and the maintenance margin is 40%. (Assume the stock pays no dividends, and ignore interest on the margin loan.) (10 points) (a) At what price will you get a margin call? (b) What is your return when you get a margin call?

Answer rating: 100% (QA)

Stock price at beginning of year 100 Stock price at end of year 88 Dividend paid 2 Inflation rate 10 ... View the full answer