Portfolio Beta related question - Two Plus Two Newer Archives

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Portfolio Beta related question

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08-11-2007, 06:57 PM

pig4bill

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Re: Portfolio Beta related question

If you buy a hundred bucks worth of stock and it goes up 10% you make ten bucks. If you buy two hundred bucks worth of stock (borrowing a hundred bucks) and it goes up 10% you make twenty bucks.

Don't forget the 8% margin interest you have to pay on the loan. Oh, and on the years the market goes down, you still pay the margin interest.

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