You have $2,500 in cash in a margin account. You decide to buy stock on margin. You buy 50 shares of stock selling at $100 per share. Assume that the stock rises in value, and 30 days later you sell the stock for $110 a share. Interest on the amount borrowed is 7%. The commission on the purchase and sale is $150. What is the total return on investment. ???


ROI (return on investment) should be 6%…
Let me know if you want to figure out how ROI was calculated.