You Purchased 100 Shares of a Stock for $22 a Share

question 57

Multiple Choice

You purchased 100 shares of a stock for $22 a share and sold them 7 months later for $26 a share. The initial margin was 70% and the maintenance margin was 35%. You received no dividend income. Your holding period return was _____ while it would have been ____ if not used margin for the purchase. Ignore interest and trading costs.

• A) 10.29%; 6.99%
• B) 18.18%; 25.97%
• C) 25.97%; 18.18%
• D) 11.90%; 17.87%
• E) 10.45%; 11.90%

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Definitions:

Kraiger

A reference to Kurt Kraiger, a psychologist known for his work on training effectiveness and evaluation.

Cognitive Outcomes

The results of intellectual processes, including learning, understanding, and applying knowledge and skills.

Skill-Based Outcomes

The specific skills and abilities that participants are expected to acquire as a result of participating in a training program or educational course.

Affective Outcomes

Results relating to changes in feelings, attitudes, or emotional areas of an individual after undergoing a training or learning process.