An Investor Purchased on Margin Orange Computer for $30 a Share.The

question 47

Essay

An investor purchased on margin Orange Computer for $30 a share.The stock's price subsequently rose to $50 a share at which time the investor sold the stock.If the margin requirement is 60 percent and the interest rate on borrowed funds was 7 percent,what would be the percentage earned on the investor's funds (excluding commissions)? What would have been the return if the investor had not bought the stock on margin?

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Victim of a Crime

An individual who suffers direct or threatened physical, emotional, or financial harm as a result of the commission of a crime.

Type A Personality

A personality type characterized by high levels of competitiveness, self-motivation, and a sense of urgency.

Determined to Achieve

A strong will or resolve to reach specific goals or outcomes, often in the face of challenges.

Calm and Composed

A state of being relaxed and in control of one's emotions, often in stressful situations.