Answer:
300% returns
150% returns
100% returns
Explanation:
given data
stock sells = $10 per share
purchase = 100 shares
price rises = $17.50
solution
Profit per share is =17.5 - 10 = 7.5
Total profit is = 100 × 7.5 = 750
if here margin requirement is 25%
then here you invest = 100 ×10 × 25% = $250
Percent of return = Profit ÷ Capital
return % = (750 ÷ 250) × 100
and get return = 300%
and
if here margin requirement is 50%
then here you invest = 100 ×10 × 50% = $500
Percent of return = Profit ÷ Capital
return % = (750 ÷ 500) × 100
and get return = 150%
and
if here margin requirement is 75%
then here you invest = 100 ×10 × 75% = $750
Percent of return = Profit ÷ Capital
return % = (750 ÷ 750) × 100
and get return = 100%
