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A stock sells for $10 a share. you purchase 100 shares for $1000 and after a year, the prices rises to $17.50. What will be the percentage of return on your investment if you bought the stock on margin and the margin requirement was 25%, 50%, and 75%? ( ignore commissions, dividends and interest expense)

Repeat problem 1 to determine the percentage return on your investment but in this case suppose the price of stock falls to $7.50 per share. What generalization can be inferred from the answers to problems 1 and 2?

Answers have to be in Excel format

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92784740

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