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  3. you purchase 120 shares for $70 a share ($8,400),

You purchase 120 shares for $70 a share ($8,400), and after a year the price falls...

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Finance

You purchase 120 shares for $70 a share ($8,400), and after ayear the price falls to $65. Calculate the percentage return onyour investment if you bought the stock on margin and the marginrequirement was (ignore commissions, dividends, and interestexpense):

  1. 15 percent. Use a minus sign to enter the amount as a negativevalue. Round your answer to one decimal place.

      

  2. 65 percent. Use a minus sign to enter the amount as a negativevalue. Round your answer to one decimal place.

      

  3. 75 percent. Use a minus sign to enter the amount as a negativevalue. Round your answer to one decimal place.

      

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Transcribed Image Text

You purchase 120 shares for $70 a share ($8,400), and after ayear the price falls to $65. Calculate the percentage return onyour investment if you bought the stock on margin and the marginrequirement was (ignore commissions, dividends, and interestexpense):15 percent. Use a minus sign to enter the amount as a negativevalue. Round your answer to one decimal place.  65 percent. Use a minus sign to enter the amount as a negativevalue. Round your answer to one decimal place.  75 percent. Use a minus sign to enter the amount as a negativevalue. Round your answer to one decimal place.  

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