rate of return
Not what you're looking for?
You are bullish on Avusa stock. The current market price is $50 per share, and you have $5000 of your own to invest. You borrow an additional R5000 from your broker at an interest rate of 8% per year, and invest $10 000 in the stock.
1.What will be your rate of return if the price of Avusa stock goes up b 10%?
2.How far does the price of Avusa stock have to fall for you to get a margin call if the maintenance margin is 30%? Assume the price fall happens immediately.
Purchase this Solution
Solution Summary
This posting offers help with calculating rate of return.
Solution Preview
1. P0=$50
Total Investment =$10000
No of share bought = 10000/50=200
P1=50*(1+10%)=$55.00
Value of ...
Purchase this Solution
Free BrainMass Quizzes
Pricing Strategies
Discussion about various pricing techniques of profit-seeking firms.
Basics of Economics
Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.
Economics, Basic Concepts, Demand-Supply-Equilibrium
The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.
Economic Issues and Concepts
This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.
Elementary Microeconomics
This quiz reviews the basic concept of supply and demand analysis.