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Financial Planning Exercise 4 Calculating profits on margined and unmargined investments Claire Gerber wants to buy 100 share

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Answer #1

Dollar net profit:
Without margin=50*625-50*541.69=$4,165.500

With margin=100*625-100*541.69-100*541.69*50%*5%=$6,976.775

Return on Investment:
Without margin=4165.500/(50*541.69)=15.380%

With margin=6976.775/(100*50%*541.69)=25.759%

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