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Calculate the Euro-Based Return an Italian Investor Would Have Realized

question 83

Essay

Calculate the euro-based return an Italian investor would have realized by investing €10,000 into a $50 American stock using 50% margin. One year after investment, the stock pays a $1 dividend, and sells for $54 the exchange has changed from €.625 per dollar to €.6875 per dollar. The interest on the margin loan is 1% per year. The margin loan was denominated in dollars.


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An expression typically observed in primates, including humans, indicating a readiness to engage in playful interactions.

Permissive

A parenting style characterized by low demands with high responsiveness.

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A governing or parental style characterized by strict obedience to authority, at the expense of personal freedom.

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Aggressive behavior that is displayed in response to a perceived threat or provocation, often impulsive and without premeditation.

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