Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. parts a,b,c and d you paid cash for $1,300 worth

parts A,B,C and D You paid cash for $1,300 worth of stock a...

70.2K

Verified Solution

Question

Accounting

parts A,B,C and D
image
You paid cash for $1,300 worth of stock a year ago. Today the portfolio is worth $1.888. Q. What rate of return did you earn on the investment? (Negative value should be indicated by a minus sign. Round your answer to 2 decimal places.) Rate of return b. Now suppose that you bought the same stock but bought it on margin. The initial margin requirement was 75% Recalculate your rate of return, ignoring any interest due. (Negative value should be indicated by a minus sign. Round your answer to 2 decimal places.) Rate of return % c. Recalculate the rates of return for a cash purchase in the event that the stock is worth $925 today (Negative value should be Indicated by a minus sign. Round your answer to 2 decimal places.) Rate of return % d. Recalculate the rates of return for a margin purchase in the event that the stock is worth $925 today. (Negative value should be Indicated by a minus sign. Round your answer to 2 decimal places.) Rate of return

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students