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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Definitions:

Reflected Appraisals

The method through which people create self-images influenced by their assumptions of others' opinions about them.

Racial Identity

An individual's awareness and experience of being a member of a racial group, including the personal significance and social meaning attached to that group membership.

Cultural Exposure

The experience of encountering and interacting with customs, traditions, and practices different from one's own.

Self-Verification Strategies

Techniques individuals use to convince others to view them as they view themselves, in order to confirm their self-concept.