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1. You purchase 100 shares for $50 a share ($5,000), and after a year the price rises to $60. What will be the percentage return

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1. You purchase 100 shares for $50 a share ($5,000), and after a year the price rises to $60. What will be the percentage return on your investment if you bought the stock on margin and the margin requirement was (a) percent? (Ignore commissions, divi- 25 percent, (b) 50 percent, and (c) 75 percent? (Ignore com dends, and interest expense.) 2. Repeat Problem 1 to determine the percentage return on your but in this case suppose the price of the stock falls to $40 per share. Wha generalization can be inferred from your answers to Problems 1 and 2 3. A stock is currently selling fu

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