Five Months Ago, You Purchased 300 Shares of Stock on Margin

question 31

Multiple Choice

Five months ago, you purchased 300 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 4.2 percent and you pay 1.75 percent above that rate. The purchase price was $18 a share. Today, you sold these shares for $20.50 each. What is your annualized rate of return?

• A) 26.15 percent
• B) 59.65 percent
• C) 62.77 percent
• D) 68.87 percent
• E) 74.64 percent

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Definitions:

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Standardized forms used in the United States to submit Medicare and Medicaid claims and certain other types of insurance claims by healthcare providers.

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