At the Beginning of 2010,Sally Purchased Besham Stock on Margin

Multiple Choice

At the beginning of 2010,Sally purchased Besham stock on margin.The initial margin requirement is 60 percent and the broker loan rate is 10 percent.Sally invested $15,000 of her own funds and margined the maximum amount allowed by the broker to purchase Besham stock.At the time,the purchase price of the stock was $50 a share.No dividends were paid during the year,and the stock was sold for $48 a share at the end of the 2010.What is the one-year holding period return for this investment?

A) 60.0%
B) 10.0%
C) 4.0%
D) 6.7%
E) 0.0%