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BaLLatris [955]
3 years ago
11

You purchase 200 shares for $70 a share ($14,000), and after a year the price rises to $80. Calculate the percentage return on y

our investment if you bought the stock on margin and the margin requirement was (ignore commissions, dividends, and interest expense): 20 percent. Round your answer to one decimal place. % 45 percent. Round your answer to one decimal place. % 85 percent. Round your answer to one decimal place. %
Business
1 answer:
vladimir2022 [97]3 years ago
4 0

Answer:

14.29%

Explanation:

Number of shares purchased= 200

Purchase price per share= $70

Year end price = $80

Total Investment cost = 200 shares * $70 per shares = $14,000

Percentage return earned on investment = Number of shares * (Year end price - Purchase price) / Investment

= 200 * ($80 - $70) / $14,000

= $2,000 / $14,000

= 0.142857

= 14.2857%

= 14.29%

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