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Returns on Stock - Purchased on Margin

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

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Returns on Stock - Purchased on Margin

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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 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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