You Purchased 100 Shares of Highlight Company for $20 a Share

question 49

Multiple Choice

You purchased 100 shares of Highlight Company for $20 a share one year ago with a margin of 50%.The stock is currently selling for $28 a share and no dividends were ever paid.The broker charges an annual interest rate of 8% and a $100 commission on both the purchase and sale of these shares.What is your annual rate of return on this investment?

• A) 21%
• B) 47%
• C) 52%
• D) 60%
• E) 72%

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Definitions:

Imitation

The action of using someone or something as a model and attempting to replicate their behavior or actions.

Accommodation

In psychology, a cognitive process that adjusts mental schemes to incorporate new information; in eyesight, the process by which the eye's lens changes shape to focus on objects at various distances.

Mirror Neurons

A type of brain cell that fires both when an individual acts and when the individual observes the same action performed by another, playing a role in learning and empathy.

Activated

Made active or operational; also refers to the process of a molecule being converted into a reactive form.