Rudolfo purchased 900 shares of stock for 6220 a share six, Ask an Expert

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Rudolfo purchased 900 shares of stock for $62.20 a share six months ago. The initial margin requirement on this stock is 75 percent and the maintenance margin is 40 percent. Rudolfo pays a 3% on his margin loan, what is his holding period return if today when he sells it, stock price rises by 25%? What if the stock price declines by 25%? (note: 3% is annualized effective rate).

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92645588

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