Initial cash investment-calculate your return on investment

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Reference no: EM131010928

Suppose you purchase 750 shares of stock at $35 per share with an initial cash investment of $14,000. The call money rate is 5 percent and you are charged a 1.5 percent premium over this rate.

Calculate your return on investment one year later if the share price is $35. Suppose instead you had simply purchased $14,000 of stock with no margin. What would your rate of return have been now?

Calculate your return on investment one year later if the share price is $19. Suppose instead you had simply purchased $14,000 of stock with no margin. What would your rate of return have been now?

Reference no: EM131010928

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