AN INVESTOR BORROWS THE MAXIMUM AMOUNT ALLOWED BY THE INITIAL MARG...

83. - MOCK AND SAMPLE EXAMS CFA LEVEL I MOCK EXAM AFTERNOON VERSIONB QUESTIONS 2014 83. - MOCK AND SAMPLE EXAMS CFA LEVEL I MOCK EXAM AFTERNOON VERSIONB QUESTIONS 2014
MOCK AND SAMPLE EXAMS CFA LEVEL I MOCK EXAM AFTERNOON VERSIONB QUESTIONS 2014

83. An investor borrows the maximum amount allowed by the initial margin requirement of 40% to

purchase 100 shares of a stock selling at $60 per share. If the investor sells the stock when its price

increases to $70 per share, her return before commissions and interest will be closest to:

A. 41.7%.

B. 27.8%.

C. 16.7%.

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