A stock was purchased for $51 a share and sold eleven months later for $54 a share. If the shares were purchased totally with cash the holding period return would be percent as compared to percent if the purchase was made using 70 percent margin. Ignore trading costs and margin interest. (Hint: Assume you purchase 10 shares on margin for margin trading case).

5.88%; 8.40%

Explanation:

In finance, the holding period return is simply the return that a portfolio or an asset has accrued during the entire period that the asset or portfolio was being held. It is a way of measuring the performance of an investment.

Based on the information that have been provided in the question,

HPR without margin will be:

= ($54 - $51)/$51

= $3/$51

= 0.588

= 5.88%

HPR with margin will be:

= ($54 - $51)/($51 × 0.70)

= $3/($35.7)

= 0.84

= 8.40%

its kinda hard to answer this when we dont have all the information that we need.