Assume you buy 100 shares of stock at Php40 per share on margin (40 percent). If the price rises to Php55 per share, what is your percentage gain on the initial equity? 2. In problem 1, what would the percentage loss on the initial equity be if the price had decreased to Php28

Assume you buy 100 shares of stock at Php40 per share on margin (40 percent). If the price rises to Php55 per share, what is your percentage gain on the initial equity? 2. In problem 1, what would the percentage loss on the initial equity be if the price had decreased to Php28

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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1. Assume you buy 100 shares of stock at Php40 per share on margin (40 percent). If the price rises to Php55 per share, what is your percentage gain on the initial equity? 2. In problem 1, what would the percentage loss on the initial equity be if the price had decreased to Php28?

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