Five Months Ago,you Purchased 400 Shares of Stock on Margin

question 47

Multiple Choice

Five months ago,you purchased 400 shares of stock on margin.The initial margin requirement on your account is 60 percent and the maintenance margin is 30 percent.The call money rate is 4.8 percent and you pay 1.85 percent above that rate.The purchase price was $16 a share.Today,you sold these shares for $18.00 each.What is your annualized rate of return?

• A)26.15 percent
• B)33.35 percent
• C)42.77 percent
• D)56.87 percent
• E)64.64 percent

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Definitions:

Balanced Scorecards

A strategic planning and management system used for aligning business activities to the vision and strategy of the organization.

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Refers to specific areas of interest, expertise, or activity, such as technology, biology, or education, which are used for organizing knowledge or resources.

Performance

The level of accomplishment of a given task measured against preset known standards of accuracy, completeness, cost, and speed.

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The process of combining multiple pieces of data or information into a single group or summary value.