What is the return on slick margin transaction

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Reference no: EM13296569

A) Your friend Slick sees a trading opportunity in health care stocks, which he expects to surge after the election. He wants to purchase 100 shares of United Health Group (NYSE: UNH), currently $57 per share, on margin. If his broker's margin requirement is 60 percent, how much margin (equity) will Slick have to provide? B) Slick borrows the rest of the money from his broker at an interest rate of 6%. Assume that the stock reaches $75 in one year. Ignoring commissions, taxes, and dividends, what is the return on Slick's margin transaction?

Reference no: EM13296569

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