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:

ABC Triad

Affect (how people feel inside), Behavior (what people do), Cognition (what people think about)

Affect

The automatic response that something is good (positive affect) or bad (negative affect)

Behavior

Refers to the actions or reactions of an individual, in response to external or internal stimuli, visible to others.

Social Psychologists

Researchers or practitioners who specialize in studying how individuals' thoughts, feelings, and behaviors are influenced by the social context or the presence of others.