
a.
Introduction:
To compute: Rate of return after 1 year if company X’s stock is sold.
b.
Introduction:A margin account is a brokerage account that allows an investor to borrow fund to purchase securities. Brokers charge an interest rate on the money which is bowered by investor.
To identify: Company X’s price before getting a margin call.
c.
Introduction: Rate of return is the profit or loss on an investment during a period of time. A short position is a technique used by the trader expected that the value of stock will reduce in forthcoming.
To analyze: Rate of return and rise in price.

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Chapter 3 Solutions
Investments, 11th Edition (exclude Access Card)
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