An investor buys $16,000 worth of a stock priced at $20 per share using 60% initial margin. The broker charges 8% on the margin loan and requires a 35% maintenance margin. The stock pays a $.50-per-share dividend in 1 year, and then the stock is sold at $23 per share. What was the investor's rate of return?
A) 17.5%
B) 19.67%
C) 23.83%
D) 25.75%
Correct Answer:
Verified
Q82: The New York Stock Exchange is a
Q83: Level 3 NASDAQ subscribers _.
A) are registered
Q84: You sell short 300 shares of Microsoft
Q85: The over-the-counter securities market is a good
Q86: The term "underwriting syndicate" describes _.
A) the
Q88: The commission structure on a stock purchase
Q89: The non-European country with the highest average
Q90: SIPC ensures investors against failure of a
Q91: The market share held by the "Other"
Q92: In 2014, BATS advertised average latency times
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents