You Purchased a Stock for $18

question 13

Multiple Choice

You purchased a stock for $18.45 a share using 70% margin. You sold the stock seven months later for $19.85 a share. You did not receive any dividend income. What was your holding period percentage return on this investment? Ignore trading costs and margin interest.

• A)8.77%
• B)9.12%
• C)10.84%
• D)11.75%
• E)12.13%

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Definitions:

Audience Shock

A reaction from the audience characterized by surprise, disbelief, or dismay, often caused by unexpected information or the manner in which it's presented.

Indirect Approach

A communication strategy that addresses the main point or issue at the end of the message, often used to soften bad news.

Negative Messages

Communications that convey unfavorable, disappointing, or unwanted information to the recipient.

Bad News

Bad news pertains to information or updates that are negative, disappointing, or undesirable to the recipient.