You have opened a margin account with $11,000 at your local brokerage firm. You instruct your broker
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Question:
You have opened a margin account with $11,000 at your local brokerage firm. You instruct your broker to purchase 600 shares of Bison Corporation Stock, which currently sells for $46 per share. Three months later, the stock is selling for $50 per share. Assume interest rate is 10% a year.
a. You close out your position after three months. What is your percentage rate of return?
b. What is your Effective Annualized Rate of Return?
Related Book For
Fundamentals of Investments Valuation and Management
ISBN: 978-0078115660
7th edition
Authors: Bradford Jordan, Thomas Miller
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