You Purchased a Stock for $18

question 98

Multiple Choice

You purchased a stock for $18.45 a share using 70 percent 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 percent
• B) 9.12 percent
• C) 10.84 percent
• D) 11.75 percent
• E) 12.13 percent

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