A Stock Was Purchased for $51 a Share and Sold

question 25

Multiple Choice

A stock was purchased for $51 a share and sold eleven months later for $54 a share.If the shares were purchased totally with cash the holding period return would be _____ percent as compared to _____ percent if the purchase was made using 70 percent margin.Ignore trading costs and margin interest.

• A)5.56; 3.89
• B)5.56; 7.94
• C)5.88; 4.12
• D)5.88; 6.69
• E)5.88; 8.40

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Definitions:

Section E

Refers to a specific segment or portion of a document, which could be a legal, academic, or policy document, focusing on a particular topic.

Ethical Decision-Making Model

A structured approach to making decisions that involve ethical considerations, often involving the identification of ethical issues, consideration of alternatives, and selection of the most ethical option.

Existing Ethical Models

Established frameworks or theories that provide guidance on how to make moral decisions and behave ethically.

Ethical Standards

Principles that guide behavior and decision-making based on notions of right and wrong.