What is the return on investor equity

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Reference no: EM131962500

You buy 100 shares of stock at $80/share using initial margin of 60%. If the maintenance margin is 25%, how far must the stock drop before you get the margin call?

1. You buy 100 shares at $20/share on 70% margin. a. What is the debit balance? b. What is the investor’s equity? c. If the stock price goes up by 50%, what is the return on investor’s equity? d. If the stock price goes down by 30%, what is the return on investor’s equity?

Reference no: EM131962500

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