Question

In: Finance

You deposit $300,000 cash in a brokerage account and short sell $500,000 of stocks on margin....

You deposit $300,000 cash in a brokerage account and short sell $500,000 of stocks on margin. Later the value of the stocks held short decreases to $469,000. What is your holding period return over this period?

Round your answer to 4 decimal places. For example, if your answer is 3.205%, then please write down 0.0321.

Solutions

Expert Solution

Holding period return = (Amount sold short - Amount now) / Cash account

Holding period return = ($500,000 - $469,000) / $300,000

Holding period return = 0.1033


Related Solutions

You have $7,933.71 in a brokerage account, and you plan to deposit an additional $4,000 at...
You have $7,933.71 in a brokerage account, and you plan to deposit an additional $4,000 at the end of every future year until your account totals $200,000. You expect to earn 14% annually on the account. How many years will it take to reach your goal? Round your answer to the nearest whole number.
You have $51,106.03 in a brokerage account, and you plan to deposit an additional $3,000 at...
You have $51,106.03 in a brokerage account, and you plan to deposit an additional $3,000 at the end of every future year until your account totals $250,000. You expect to earn 10% annually on the account. How many years will it take to reach your goal?
You have $30,637.17 in a brokerage account, and you plan to deposit an additional $4,000 at...
You have $30,637.17 in a brokerage account, and you plan to deposit an additional $4,000 at the end of every future year until your account totals $270,000. You expect to earn 13% annually on the account. How many years will it take to reach your goal? Round your answer to two decimal places at the end of the calculations. ____ years
You have $78,653.11 in a brokerage account, and you plan to deposit an additional $3,000 at...
You have $78,653.11 in a brokerage account, and you plan to deposit an additional $3,000 at the end of every future year until your account totals $280,000. You expect to earn 10% annually on the account. How many years will it take to reach your goal? Round your answer to two decimal places at the end of the calculations.
You have $7,115.21 in a brokerage account, and you plan to deposit an additional $5,000 at...
You have $7,115.21 in a brokerage account, and you plan to deposit an additional $5,000 at the end of every future year until your account totals $270,000. You expect to earn 14% annually on the account. How many years will it take to reach your goal? Round your answer to two decimal places at the end of the calculations.
You have $32,827.07 in a brokerage account, and you plan to deposit an additional $4,000 at...
You have $32,827.07 in a brokerage account, and you plan to deposit an additional $4,000 at the end of every future year until your account totals $290,000. You expect to earn 12% annually on the account. How many years will it take to reach your goal? Round your answer to the nearest whole number.
You have 42,180.53 in a brokerage account, and you plan to deposit and additional 5,000 at...
You have 42,180.53 in a brokerage account, and you plan to deposit and additional 5,000 at the end of every future year until your account total 250,000. you expect to earn 12% annually on the account. How many years will it take to reach your goal?
You have $4,311.89 in a brokerage account, and you plan to deposit an additional $5,000 at...
You have $4,311.89 in a brokerage account, and you plan to deposit an additional $5,000 at the end of every future year until your account totals $210,000. You expect to earn 12% annually on the account. How many years will it take to reach your goal?
You have a margin account with a balance of $150,000. The initial margin deposit is 60%...
You have a margin account with a balance of $150,000. The initial margin deposit is 60% and Plymouth Industried is currently selling at $50 per share. How many shares of Plymouth can you buy? Show your calculations.
1. You have $10,026.61 in a brokerage account, and you plan to deposit an additional $5,000...
1. You have $10,026.61 in a brokerage account, and you plan to deposit an additional $5,000 at the end of every future year until your account totals $220,000. You expect to earn 11% annually on the account. How many years will it take to reach your goal? Round your answer to two decimal places at the end of the calculations. ____ years 2. An investment will pay $150 at the end of each of the next 3 years, $250 at...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT