Rate of return and without margin rate of return

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Reference no: EM131194820

Suppose you purchase 1,050 shares of stock at $76 per share with an initial cash investment of $30,000. 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 $76. Suppose instead you had simply purchased $30,000 of stock with no margin. What would your rate of return have been now? Rate of Return? Without Margin rate of return?

Reference no: EM131194820

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