An investor purchases 1,000 shares of a non-dividend paying stock on margin and sells them after one year. Given the following details:
- Purchase price per share: $25
- Sale price per share: $20
- Annual call money rate: 5%
- Leverage ratio: 2
Ignoring commissions, the investor's holding period return is closest to: | Chartered Financial Analyst Level 1 Quiz - LeetQuiz
Chartered Financial Analyst Level 1
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An investor purchases 1,000 shares of a non-dividend paying stock on margin and sells them after one year. Given the following details:
Purchase price per share: $25
Sale price per share: $20
Annual call money rate: 5%
Leverage ratio: 2
Ignoring commissions, the investor's holding period return is closest to: