问题 单项选择题

Lynne Hampton purchased 100 shares of $75 stock on margin. The margin requirement set by the Federal Reserve Board was 40 percent, but Hampton’s brokerage firm requires a total margin of 50 percent. Currently the stock is selling at $62 per share. What is Hampton’s return on investment before commission and interest if she sells the stock now()

A. -17%.

B. -35%.

C. -40%.

答案

参考答案:B

解析:

Hampton originally purchased 100 shares at $75 for a total value of $7500. Half of the value ($3750) was borrowed and Hampton paid cash for the other half. The current total market value of the stock is $6200. If Hampton sells her holdings she will have $2450 left after she pays off the loan. Hampton’s return on her original investment is: $2450/3750-1=0.65-1=-0.35=-35%.

单项选择题
单项选择题