Question: Your margin account requires an initial margin of 5 0 % , and a maintenance margin of 3 0 % . You deposit $ 7

Your margin account requires an initial margin of

50 %,

and a maintenance margin of

30 % .

You deposit $

76, 000

cash in a brokerage account and purchase stocks using all available margin and borrowing the rest from your broker. Later, the value of your stock holdings rises to $

169, 000 .

What is your percent return?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

The Fara Littlebear Society is an NFPO funded by government grants and private donations. It was established in Year 5 by the friends of Fara Littlebear to encourage and promote the work of Native...

Tony and Suzie see the need for a rugged all-terrain vehicle totransport participants and supplies. They decide to purchase a usedSuburban on July 1, 2025, for $12,000. They expect to use theSuburb 2...

i am taking Cooperate finance which is FIN222 can help me to answer.. ? Tutorial 1 Topic 1 Chapter 1 4. What are the main advantages and disadvantages of organising a firm as a corporation? 6. You...

Year 1 Year 2 Year 3 Year 4 Net Income Net Cash Flow $47,000 $87,000 21,000 61,000 13,500 (2,000) 53,500 42,000 This information has been collected in the Microsoft Excel Online file. Open the...

Consider futures on silver, price in dollars per ounce ($/oz). The spot price on Feb 15 is $400/oz, with a futures contract price of $412.12 for delivery on May 15. Assume the interest rate r is...

Print Name (Last, First) ---- MTH 459/559 HW #12.A [10 pts] Consider futures on silver, price in dollars per ounce ($/oz). The spot price on Feb 15 is $400/oz, with a futures contract price of...

Margin %: Your margin account requires an initial margin of 50%, and a maintenance margin of 30%. You deposit $83,000 cash in a brokerage account and purchase stocks using all available margin and...

Margin $: Your margin account requires an initial margin of 50%, and a maintenance margin of 30%. You deposit $74,000 cash in a brokerage account and purchase stocks using all available margin and...

Your margin account requires an initial margin of 5 0 % , and a maintenance margin of 3 0 % . You deposit $ 7 8 , 0 0 0 cash in a brokerage account and purchase stocks using all available margin and...

Your margin account requires an initial margin of 5 0 % , and a maintenance margin of 3 0 % . You deposit $ 7 8 , 0 0 0 cash in a brokerage account and short sell stocks using all available margin...

1 8 1 point Your margin account requires an initial margin of 5 0 % , and a maintenance margin of 3 0 % . You deposit $ 3 3 , 0 0 0 cash in a brokerage account and short sell stocks using all...

You are at 94 west longitude in the Mountain Time zone of the United States. The date is July 14, and daylight savings time is in effect. If your watch reads 13:55:23 hours, what is the corresponding...

27. The total possible stereoisomers of the given compound CH 3 (a) two (b) three H (c) one (d) four

Express the number a s a ratio o f integers. 4 . b a r ( 6 9 4 ) = 4 . 6 9 4 6 9 4 6 9 4 dots

Block House Developments (BHD) is a real estate development company that provides affordable accommodation for students. The vision for BHD is to become the market leader in student accommodation, by...

Explain what happens to a cell that makes it into a cancer cell.

In view of research on toddlers' compliance, active resistance, and budding capacity to delay gratification, do you think that the expression "the terrible twos" - commonly used to characterize...

1. What specifically can stem cells be used for in medicine / treatments? 2. What can they do for people? Be specific in what they can do and how they can do this.

Consider a scenario in which an I/O request from track 1 is followed by an I/O request from track 2 on a sector that is 180 degrees away from the first request. A third request is from a sector on...

Design a minimum-mass symmetric three-bar truss (the area of member 1 and that of member 3 are the same) to support a load P, as was shown in Fig. 2.9. The following notation may be used: Pu = P cos...

Completely Randomized Design Refer to the breakfast study in Example 11.4, in which the effect of nutrition on attention span (in minutes) was studied. 1. Enter the data into columns A, B, and C of...

The data from Example 11.4 involving breakfast and the attention spans of three groups of elementary students were analyzed using MINITAB. The graphs in Figure 11.12, gen- erated by MINITAB, are the...

A company plans to promote a new product by using one of three advertising cam- paigns. To investigate the extent of product recognition from these three campaigns, 15 market areas were selected and...