Question

You purchased 200 shares of China Mobile (CHL) at $55 per share one year ago. To...

You purchased 200 shares of China Mobile (CHL) at $55 per share one year ago. To pay the purchase, you borrowed $5,000 from your broker. If now you sell all 200 shares at $50, what is the rate of return (percentage) on your account? Assume the interest rate on the loan over the borrowing period is 2%.

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Answer #1
number of shares purchased 200
purchase price per share $55
Total Amount $11,000
Borrowed amount $5,000
interest 2%
Interest amount 100
selling price per share $50
Sale value $10,000
Return on investment is Final Value of Investment − Initial Value of Investment​×100%/cost of the investment
(10000-11000)*100/11000+100
Return on investment is -9.0090%
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