Business, 21.05.2020 20:58 tadams9922
Suppose you buy 100 shares of stock XYZ at $10 a share with a margin of 50%. You also buy 200 shares of stock ABC at $50 a share with a 60% margin. You are very sure that, in six months, the price of the first stock would be $15 because you got insider information, but you are not so sure about the price of the second stock. Suppose you want to achieve a 20% return from your portfolio, then the price of the second stock needs to be at least how much to achieve that goal?(Assuming the broker charges you a 6% margin loan interest and the stocks pay no dividend)
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Suppose you buy 100 shares of stock XYZ at $10 a share with a margin of 50%. You also buy 200 shares...
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