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vladimir2022 [97]
3 years ago
5

d (i). Suppose that ZX Inc. is currently selling at $50 per share. You buy 200 shares, using $5,000 of your own money and borrow

ing the remainder of the purchase price from your broker. The rate on the margin loan is 5%. What is the rate of return on your margined position (assuming again that you invest $5,000 of your own money) if ZX Inc. is selling after one year at $46 (use whole number percentage with two decimals rounded up/down - i.e. 0.3245 input 32.45) ? Group of answer choices -21% -20% -19% -18%
Business
1 answer:
strojnjashka [21]3 years ago
8 0

Answer:

-21%

Explanation:

Initial share price = $50

Share price after 1 year = $46

net return = (200 x $46) - $10,000 - ($5,000 x 5%) = $9,200 - $10,000 - $250 = -$1,050

rate of return of margined position = -$1,050 / $5,000 = -0.21 = -21%

when you operate on the margin, your earnings can increase or decrease dramatically. In this case, an 8% price decrease resulted in a 215 lose.

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3 years ago
ethan needs to assign his team members the following tasks. one of the team members, gail, is an extrovert. which task is most a
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Moderating our team meeting would require a Gail to coordinate with various staff and departments, which would mean that he has to have experience in talking to different people. So the manager Ethan should assign this task to Gail. Therefore, option D is the correct option.

Learn more about extroverts, here

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#SPJ4

The question is incomplete, the complete question will be:

independently analyzing the latest market research report

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8 0
2 years ago
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