Question

fSuppose you purchase 1,350 shares of stock at $36 per share with an initial cash investment of $21,000. The call money rate is 5 percent and you are charged a 1.5 percent premium over this rate. a.Calculate your return on investment one year later if the share price is $44. Suppose instead you had simply purchased $21,000 of stock with no margin. What would your rate of return have been now? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. Omit the “%” sign in your response.)     Rate of return %    Without margin, rate of return   %   b.Calculate your return on investment one year later if the share price is $36. Suppose instead you had simply purchased $21,000 of stock with no margin. What would your rate of return have been now? (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. Omit the “%” sign in your response.)     Rate of return %    Without margin, rate of return   %   c.Calculate your return on investment one year later if the share price is $20. Suppose instead you had simply purchased $21,000 of stock with no margin. What would your rate of return have been now?(Negative amounts should be indicated by a minus sign. Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. Omit the “%” sign in your response.)     Rate of return %    Without margin, rate of return %  

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