Today, You Are Purchasing 100 Shares of Stock on Margin

question 34

Multiple Choice

Today, you are purchasing 100 shares of stock on margin. The purchase price per share is $35. The initial margin requirement is 70% and the maintenance margin is 30%. The call money rate is 4.5% and you are charged 1.6% over that rate. What will your rate of return be if you sell your shares one year from now for $37 a share? Ignore dividends.

• A)5.55%
• B)6.42%
• C)7.18%
• D)7.49%
• E)8.03%

Comprehend the inflation rate calculation and its significance.

Recognize the factors causing inflation (cost-push and demand-pull).

Gain knowledge about historical inflation trends and their causes.

Differentiate between the effects of inflation on different economic agents (borrowers, lenders, workers, etc.).

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Definitions:

Alzheimer's Disease

A progressive neurological disorder that causes memory loss and cognitive decline due to the death of brain cells.

Actual Drug

Refers to a pharmaceutical compound that has a therapeutic effect when administered, as opposed to a placebo which has no pharmacological effect.

Independent Variable

In an experiment, the variable that is manipulated or changed by the researcher to observe its effects on the dependent variable.

Extraneous Variable

Any variable that is not intentionally studied in the experiment, which can affect the outcome and potentially confound the results if not controlled.