You buy a stock on margin with 10000 of your own money and


You buy a stock on margin with $10,000 of your own money and an $8,000 loan from your broker. The rate of interest on your margin loan is 5%. If the expected stock return is 18% with a standard deviation of 26%, what is the expected 5% VaR of your investment?

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Finance Basics: You buy a stock on margin with 10000 of your own money and
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