Joseph Bought 100 Shares of Stock at a Price of $24

question 12

Multiple Choice

Joseph bought 100 shares of stock at a price of $24 a share.He used his 70% margin account to make the purchase.Joseph sold his stock after a year for $20 a share.Ignoring margin interest and trading costs, what is Joseph's return on investor's equity for this investment?

• A)-17%
• B)-24%
• C)24%
• D)-56%

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