P2.4 Assume an investor buys 1000 shares at $5 per share, using a margin loan to finance

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P2.4 Assume an investor buys 1000 shares at $5 per share, using a margin loan to finance 30%

of the purchase. If the share price rises to $8, what is the investor’s new position?

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Fundamentals Of Investing

ISBN: 9781442532885

3rd Edition

Authors: Lawrence J. Gitman, Michael D. Joehnk, Scott Smart, Roger Juchau, Donald Ross, Sue Wright

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