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

question 101

Multiple Choice

Megan bought 200 shares of stock at a price of $10 a share. She used her 70% margin account to make the purchase. Megan sold her stock 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?

• A) 67%
• B) 29%
• C) 14%
• D) 10%

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Definitions:

United States

A country located in North America, known for being a federal republic composed of 50 states.

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An enterprise that produces, processes, or distributes food products for consumer consumption, ranging from agricultural production to packaged goods.

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The act of consuming edible substances to provide nutritional support for the body.