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Business, 11.09.2019 22:10 jennyn26

Suppose that xtel currently is selling at $20 per share. you buy 1,000 shares using $15,000 of your own money, borrowing the remainder of the purchase price from your broker. the rate on the margin loan is 8%.
a. what is the percentage increase in the net worth of your brokerage account if the price of xtel immediately changes to: (i) $22; (ii) $20; (iii) $18? what is the relationship between your percentage return and the percentage change in the price of xtel?

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Suppose that xtel currently is selling at $20 per share. you buy 1,000 shares using $15,000 of your...

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