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Question
Seven months ago, Freda purchased 400 shares of stock on margin at a price per share of $36. The initial margin requirement on her account is 70 percent and the maintenance margin is 40 percent. The call money rate is 4.4 percent and she pays 2 percent above that rate. Today, she sold these shares for $37.50 each. What is her annualized rate of return?A. 7.50 percent
B. 7.61 percent
C. 14.37 percent
D. 16.90 percent
E. 17.42 percent
Answer
This answer is hidden. It contains 175 characters.
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