You purchased 1,200 shares of stock on margin for $53 per share and sold the shares 3 months later for $58.60 per share. The initial margin requirement was 55 percent and the maintenance margin was 35 percent. The interset rate on the margin loan was 8 percent. You received no dividend income. What was your holding period return?

Answer rating: 100% (QA)

Heres how to calculate the holding period return for your stock purchase on margin 1 Calculate initi... View the full answer