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A leverage question: I bought $10,000 worth of shares in AOL Time Warner last year. I put up $5,000 of my own money and borrowed

A leverage question: I bought $10,000 worth of shares in AOL Time Warner last year. I put up $5,000 of my own money and borrowed $5,000 from my broker. The loan from my broker (called a margin loan) carries an interest rate of 7% per year. One year later, I sold all my shares in AOL for $13,000. What is the rate of return on this investment?

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