单选题 Assume that one year ago you bought 500 shares of a stock at $ 20 per share using margin. The margin rate was 50% and the interest rate on the margin loan was 10%. Assume no commissions. What is your return if the current stock price is $ 25 per share?

A、

A. 25%.
B、

B. 40%.
C、

C. 50%.

【正确答案】 B

【答案解析】Original equity=50% of (500×$20)=0.50×$10000=$5000. Original Loan=50% of (500×$20)=0.50×$10000=$5000. Interest on loan=10% of $ 5000=$ 500. Current loan=$ 5000+$ 500=$ 5500. Current Equity=(QP-L)=(500×$ 25-$ 5500)=$12500-$ 5500=$ 7000. $ return=$ 7000-$ 5000=$ 2000. Rate of return=$ 2000/$ 5000=40%.