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4. You decide to purchase 50,000 shares of Boeing at $365/share, while borrowing the maximum amount permitted by your broker in order to do so.
4. You decide to purchase 50,000 shares of Boeing at $365/share, while borrowing the maximum amount permitted by your broker in order to do so. The initial margin requirement is 60% and the maintenance margin requirement is 40%. What is the return on the amount of equity margin you originally posted to buy these shares if the price of Boeings stock immediately falls to the level at which you will receive a margin call?
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