You purchase 120 shares for $40 a share ($4,800), and after a year the price falls to

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You purchase 120 shares for $40 a share ($4,800), and after a year the price falls to $35. Calculate the percentage return on your investment if you bought the stock on margin and the margin requirement was (ignore commissions, dividends, and interest expense):

15 percent. Use a minus sign to enter the amount as a negative value. Round your answer to one decimal place.

55 percent. Use a minus sign to enter the amount as a negative value. Round your answer to one decimal place.

80 percent. Use a minus sign to enter the amount as a negative value. Round your answer to one decimal place.

Related Book For answer-question

Basic Finance An Introduction to Financial Institutions Investments and Management

ISBN: 978-1111820633

10th edition

Authors: Herbert B. Mayo

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Posted Date: Feb 29, 2024 03:48 AM

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You purchase 120 shares for $40 a share ($4,800), and after a year the price falls to

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Basic Finance An Introduction to Financial Institutions Investments and Management

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