Assume 5 annual interest rate on the margin what is the


If an investor purchases a stock that appreciates from $40 per share to $60 per share over that six month period, what is his return with %50 margin. Next, assume 5% annual interest rate on the margin. What is the return assuming no margin? What is his return if the stock depreciates from $40 to $20 assuming the same annual interest rate on margin. What is the return assuming no margin?

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Financial Management: Assume 5 annual interest rate on the margin what is the
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