A trader has purchased 500 shares of a non-dividend-paying, Ask an Expert

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A trader has purchased 500 shares of a non-dividend-paying rm on margin at a price of $40 per share. The leverage ratio is 2.0.

Six months later, the trader sells these shares at $35.20 per share.

Ignoring any interest paid on the amount borrowed and transaction costs, what was the six-month rate of return during the six-month holding period on the trader's initial equity? Please explain.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92868305

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