Calculating return on investment. Which of the following would offer the best return on investment? Assume that you buy5,000 in stock in all three cases, and ignore interest and transaction costs in all your calculations.
a. Buy a stock at60 without margin, and sell it a year later at90.
b. Buy a stock at20 with 50 percent margin, and sell it a year later at30.
c. Buy a stock at40 with 75 percent margin, and sell it a year later at55.
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