You deposit $100,00 cash in a brokerage account and purchase $200,000 of stocks on margin by borrowing

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You deposit $100,00 cash in a brokerage account and purchase $200,000 of stocks on margin by borrowing $100,000 from your broker. Later, the value of your stock holdings falls to $150,000, whereupon you get nervous and close your account. What is the percentage return on your investment (ignore interest paid)?

Posted Date: Nov 14, 2021 01:01 PM

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You deposit $100,00 cash in a brokerage account and purchase $200,000 of stocks on margin by borrowing

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The loss borne by the investor is given by Final ... View the full answer

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