At the Beginning of 2010,Steve Purchased ACME Stock on Margin

question 77

Multiple Choice

At the beginning of 2010,Steve purchased ACME stock on margin.The initial margin requirement is 50 percent and the broker loan rate is 8 percent.Steve invested $15,000 of his own funds and margined the maximum amount allowed by the broker to purchase ACME stock.At the time,the purchase price of the stock was $25 a share.No dividends were paid during the year,and the stock was sold for $32 a share at the end of the 2010.What is the one-year holding period return for this investment?

• A) 28.0%
• B) 56.0%
• C) 24.0%
• D) 40.0%
• E) 48.0%

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Definitions:

Avoidant Personality Disorder

A mental health disorder characterized by a long-standing pattern of extreme social inhibition, feelings of inadequacy, and sensitivity to rejection.

Histrionic Personality Disorder

A personality disorder characterized by a pattern of excessive attention-seeking and emotionally charged behaviors.

Cognitive-Behavioral

Refers to a psychotherapeutic treatment that helps patients understand the thoughts and feelings that influence behaviors.

Psychodynamic

A psychological perspective that emphasizes unconscious processes and past experiences affecting current behavior.