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Annual percentage return and effective yield

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Reference no: EM131848475

You are bullish on a defense industry so you take a long margined position and buy a total of 100 shares of stock at $47.86 per share. initial margin is 60%. Maintenance margin is 30%.

Assume you hold your position for six months and then you sell all 100 of your shares for $51 per share. the 6-month rate on borrowed money is 2% (the annual percentage rate or APR is 4%). what is your 6-month percentage return on invested capital, annual percentage return (APR) effective yield?

Reference no: EM131848475

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