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Investor's return- Buying on Margin

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What would be the investor's return if a stock falls by 9% if purchased on 40% margin?

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Investor's return- Buying on Margin

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Let's presume the price of the stock be 100. Now, a 9% fall will result in price going down to 91.

At 40%, ...

Solution provided by:
Sheetal Jain, PGDM
Education
  • BComm, University of Delhi
  • Post Graduate Diploma in Management (Equivalent to MBA), All India Management Association
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