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Megan Bought 200 Shares of Stock at a Price of $10

question 30

Multiple Choice

Megan bought 200 shares of stock at a price of $10 a share, assuming a margin loan of 30%. Megan sold her shares after a year for $12 a share. Ignoring margin interest and trading costs, what is Megan's return on investor's equity for this investment?


Definitions:

Primary Market

The financial market where new securities are issued and sold for the first time to investors, facilitating funds raising for corporations and governments.

Investment Banker

A professional who advises and assists companies on capital market transactions like IPOs, mergers, and acquisitions.

Market Price

The current price at which an asset or service can be bought or sold in the marketplace.

Financial Media

Media outlets and platforms that specialize in reporting news and analysis on the financial and economic sectors, including markets and investments.

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