Seven Months Ago,Freda Purchased 400 Shares of Stock on Margin

question 28

Multiple Choice

Seven months ago,Freda purchased 400 shares of stock on margin at a price per share of $36.The initial margin requirement on her account is 70 percent and the maintenance margin is 40 percent.The call money rate is 4.4 percent and she pays 2 percent above that rate.Today,she sold these shares for $37.50 each.What is her annualized rate of return?

• A)7.50 percent
• B)7.61 percent
• C)14.37 percent
• D)16.90 percent
• E)17.42 percent

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Definitions:

Rites of Passage

Ceremonies or rituals marking important stages in individuals' lives, symbolizing their transition from one role to another.

Life Course

The connection between people’s personal attributes, the roles they occupy, the life events they experience, and the social and historical context of these events.

Language Acquisition

The process by which humans acquire the ability to perceive, produce, and understand language, typically developing in childhood.

Psychological Effects

encompass the impacts or changes in individual psychological states, including thoughts, feelings, and behaviors, as a result of exposure to certain stimuli or experiences.