Multiple Choice
You purchased 300 shares of common stock on margin for $60 per share. The initial margin is 60%, and the stock pays no dividend. What would your rate of return be if you sell the stock at $45 per share? Ignore interest on margin.
A) 25.00%
B) -33.33%
C) 44.31%
D) -41.67%
E) -54.22%
Correct Answer:
Verified
Correct Answer:
Verified
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