You purchased 269 shares of common stock on margin for $45.22 per share.  The initial margin is 50% and the stock pays no dividend.  Your rate of return would be __________ if you sell the stock at $48 per share.  Ignore interest on margin.   Group of answer choices   21.08% 14.05% 15.81% 19.32% 12.30%

Essentials Of Investments
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ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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Chapter1: Investments: Background And Issues
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You purchased 269 shares of common stock on margin for $45.22 per share.  The initial margin is 50% and the stock pays no dividend.  Your rate of return would be __________ if you sell the stock at $48 per share.  Ignore interest on margin.
 
Group of answer choices
 
21.08%
14.05%
15.81%
19.32%
12.30%
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Using the rate of return formula

 

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