The Nasdaq 100 Trust (QQQQ), known popularly as Cubes or Qubes, tracks the Nasdaq 100 Index. The index was created in 1985 to represent the 100 largest (in terms of market cap) nonfinancial stocks in the Nasdaq Composite Index. One year ago it sold for $48.15 per share; today it sold for $45.65 per share. During the year, it paid dividends totaling $0.15.Jazy sold 1000 shares short one year ago and closed her position today. Her broker required a 60% margin deposit.What percentage return did Jazy earn on her initial investment? Group of answer choices
The Nasdaq 100 Trust (QQQQ), known popularly as Cubes or Qubes, tracks the Nasdaq 100 Index. The index was created in 1985 to represent the 100 largest (in terms of market cap) nonfinancial stocks in the Nasdaq Composite Index. One year ago it sold for $48.15 per share; today it sold for $45.65 per share. During the year, it paid dividends totaling $0.15.Jazy sold 1000 shares short one year ago and closed her position today. Her broker required a 60% margin deposit.What percentage return did Jazy earn on her initial investment? Group of answer choices
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
Related questions
Question
The Nasdaq 100 Trust (QQQQ), known popularly as Cubes or Qubes, tracks the Nasdaq 100 Index. The index was created in 1985 to represent the 100 largest (in terms of market cap) nonfinancial stocks in the Nasdaq Composite Index. One year ago it sold for $48.15 per share; today it sold for $45.65 per share. During the year, it paid dividends totaling $0.15.Jazy sold 1000 shares short one year ago and closed her position today. Her broker required a 60% margin deposit.What percentage return did Jazy earn on her initial investment?
Group of answer choices
-11.5%
-5.3%
-4.9%
8.1%
13.5%
Expert Solution
Step 1
Amount of margin deposited =1000 shares× $48.15 ×60%
=$28890
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Solved in 2 steps
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