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You Purchased 100 Shares of Highlight Company for $20 Per

Question 83

Multiple Choice

You purchased 100 shares of Highlight Company for $20 per share one year ago with a margin of 50%. The stock is currently selling for $28 per share and no dividends were ever paid. The broker charges an annual interest rate of 8% and a $100 commission on both the purchase and sale of these shares. What is your annual rate of return on this investment?


A) 21%
B) 47%
C) 52%
D) 60%
E) 72%

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