subject
Business, 22.04.2020 04:59 taetae83

You are buying stock A on margin (1,000 shares). The interest rate on the margin loan is 12% per year. At the initiation of your trade, the bid price is $98, and the ask price is $104. Moreover, the initial margin is set to be 70%, and the maintenance margin is set to be 40%. Your investment horizon is one year. Suppose that the stock price hits zero at the end of your investment horizon. Calculate the return on equity (ROE) at the end of your investment horizon.

ansver
Answers: 2

Another question on Business

question
Business, 22.06.2019 08:40
Which of the following statements is true regarding the reporting of outside interests and the management of conflicts? investigators are responsible for developing their own management plans for significant financial interests. the institution must report identified financial conflicts of interest to the u.s. office of research integrity. investigators must disclose their significant financial interests related to their institutional responsibilities and not just those related to a particular project. investigators must disclose all of their financial interests regardless of whether they are related to a research project.
Answers: 3
question
Business, 22.06.2019 12:40
Kumar consulting operates several stock investment portfolios that are used by firms for investment of pension plan assets. last year, one portfolio had a realized return of 12.6 percent and a beta coefficient of 1.15. the average t-bond rate was 7 percent and the realized rate of return on the s& p 500 was 12 percent. what was the portfolio's alpha?
Answers: 1
question
Business, 22.06.2019 17:30
Gary lives in an area that receives high rainfall and thunderstorms throughout the year. which device would be useful to him to maintain his computer?
Answers: 2
question
Business, 22.06.2019 22:00
Which of the following is a function performed by market prices? a. market prices communicate information to buyers and sellers. b. market prices coordinate the decisions of buyers and sellers. c. market prices motivate entrepreneurs to produce those products that are currently most desired relative to their costs of production. d. all of the above are functions performed by market prices.
Answers: 2
You know the right answer?
You are buying stock A on margin (1,000 shares). The interest rate on the margin loan is 12% per yea...
Questions
question
English, 20.01.2021 19:00
question
Mathematics, 20.01.2021 19:00
question
Mathematics, 20.01.2021 19:00
question
Mathematics, 20.01.2021 19:00
Questions on the website: 13722363