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5. Suppose Stock XYZ is selling at $40 per share. You buy 10,000 shares, using $180,000 of own money, and borrow the remainder. The


 

5. Suppose Stock XYZ is selling at $40 per share. You buy 10,000 shares, using $180,000 of own money, and borrow the remainder. The rate on the margin loan is 6% per year your a. What is your total return on the investment if in 12 months, the price changes to $37, $40, $43 per share. b. c. If the maintenance margin is 25%, at what price will you get a margin call? What if you only used 100,000 of your own money?

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