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A speculator opened an account with her broker to purchase 2,000 shares of FSLR (First Solar) for $60 each. The initial margin requirement was 40%.

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A speculator opened an account with her broker to purchase 2,000 shares of FSLR (First Solar) for $60 each. The initial margin requirement was 40%. The speculator financed the remainder of the purchase by taking out a loan that charges 10% annual interest. A year later the price of FSLR decreased to $50 per share and the stock did NOT pay any dividends. Assume no commissions. If the maintenance margin requirement is 30%, will the speculator receive a margin call? A Yes B.NO C. No enough information provided QUESTION 19 A speculator opened an account with her broker to purchase 2,000 shares of FSLR (First Solar) for $60 each. The initial margin requirement was 40%. The speculator financed the remainder of the purchase by taking out a loan that charges 10% annual interest. A year later the price of FSLR decreased to $50 per share and the stock did NOT pay any dividends. Assume no commissions. What is the rate of return on the investment after one year? A-50.296 B. -54.596 C.-56.7% D.-60.896 Save All A Click Save and Submit to save and submit. Click Save All Answers to save all answers

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