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1 . Assume you buy 2 0 0 shares of stock at $ 7 0 per share on margin ( 4 0 percent ) .

1. Assume you buy 200 shares of stock at $70 per share on margin (40 percent).
a. If the price rises to $95 per share, what is your percentage gain on the initial equity?
b. What would the percentage loss on the initial equity be if the price had decreased to $40?

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