Joseph bought 100 shares of stock at a price of $24 a share, assuming a margin loan of 30%. Joseph sold his shares after a year for $20 a share. Ignoring margin interest and trading costs, what is Joseph's return on investor's equity for this investment?
A) - 56%.
B) - 17%.
C) 24%.
D) - 24%.
Correct Answer:
Verified
Q1: Shares and bonds are traded in
A) federal
Q2: Shares purchased in the secondary market are
Q3: The price an individual investor will pay
Q4: The governmental agency that oversees the capital
Q6: Megan bought 200 shares of stock at
Q7: Including foreign investments in a portfolio
A) decreases
Q8: Assume the foreign exchange rate for the
Q9: Companies offering their stock to the public
Q10: The purchase of shares with cash in
Q11: A rights offering is the
A) sale of
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