Assume You Purchase a Stock on Margin, and Compare Your

question 100

Multiple Choice

Assume you purchase a stock on margin, and compare your returns with a cash purchase. If the stock return is positive, the effect of margin will make your return _____ than if you had purchased the stock with cash. If the stock return is negative, the effect of margin will make your return _____ than if you had purchased the stock with cash.

• A) lower; lower
• B) lower; higher
• C) higher; higher
• D) higher; lower
• E) insufficient information

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Definitions:

Data Type

A classification that specifies the type of data a variable or object can hold in programming.

Long Text Field

A type of database field that can store extensive amounts of characters, suitable for paragraphs of text.

Store

Store commonly denotes a command or function in computing that involves saving data or information in a designated location.

Characters

The symbols, including letters, numbers, and punctuation marks, used in writing to construct words and sentences.