You Purchased a Stock for $19

question 68

Multiple Choice

You purchased a stock for $19.75 a share using 70 percent margin. You sold the stock seven months later for $20.80 a share. You did not receive any dividend income. What was your holding period percentage return on this investment? Ignore trading costs and margin interest.

• A) 5.77 percent
• B) 6.12 percent
• C) 7.59 percent
• D) 8.75 percent
• E) 9.13 percent