Tony Purchased 100 Shares of T-Rex Stock for $43 a Share.On

question 62

Multiple Choice

Tony purchased 100 shares of T-Rex stock for $43 a share.On the same day,Sam also purchased 100 shares of T-Rex stock for $43 a share.Tony paid cash for his purchase while Sam used margin.The initial margin requirement on this stock is 60 percent while the maintenance margin is 40 percent.Both Tony and Sam sold their shares after eight months at a price of $40 a share.The stock pays no dividends.Tony had a holding period percentage return of ________ percent as compared to Sam's ________ percent return.Ignore margin interest and trading costs.

• A) -4.19; -6.98
• B) -4.19; -11.63
• C) -6.98; -4.19
• D) -6.98; -11.63
• E) -11.63; -7.56

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Definitions:

Behaviors

Actions or reactions of an individual or group in response to external or internal stimuli.

Transference

In psychotherapy, the process by which emotions and desires originally associated with one person are unconsciously shifted to another person.

Social Worker

A professional dedicated to helping individuals, families, and communities to cope with challenges and improve their well-being.

Past Experiences

Events or occurrences from an individual's life history that influence their present thinking, behavior, and emotional responses.