Share
Explore BrainMass

Returns on Stock - Purchased on Margin

What will be the investor's return if a stock rises by 7% if purchased on 50% margin?

Solution Preview

Let us presume that the purchase price of the stock is $100.

If the investor has purchased the price on 50% margin, his total investment will be $50.

A 7% ...

Solution Summary

Returns on Stock - Purchased on Margin

$2.19