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What rate of return did you earn on the investment

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Reference no: EM132131633

You paid cash for $1,300 worth of stock a year ago. Today the portfolio is worth $1,888.

a. What rate of return did you earn on the investment?

b. Now suppose that you bought the same stock but bought it on margin. The initial margin requirement was 75%. Recalculate your rate of return, ignoring any interest due.

c. Recalculate the rates of return for a cash purchase in the event that the stock is worth $925 today.

d. Recalculate the rates of return for a margin purchase in the event that the stock is worth $925 today

Reference no: EM132131633

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