You Purchased 100 Shares of Common Stock on Margin for $60

question 22

Multiple Choice

You purchased 100 shares of common stock on margin for $60 per share. The initial margin is 50%, and the stock pays no dividend. What would your rate of return be if you sell the stock at $72 per share? Ignore interest on margin.

• A) 28%
• B) 33%
• C) 14%
• D) 40%
• E) 24%

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Definitions:

Early Exposure

The experience or introduction to diverse stimuli or environments at a young age, influencing future behavior and development.

Myelin

A fatty substance that encases and protects nerve fibers, facilitating the rapid transmission of electrical signals along the nervous system.

Neuron

A specialized cell transmitting nerve impulses; a nerve cell.

Fatty Substance

Any of various natural oily or greasy substances occurring in plants and animals, used by the body for energy, heat, and as a component of cell membranes.