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an equity fund has a beta of 1.4, interpret its beta value You have 40,000 to invest in a stock currently priced at 80 a

an equity fund has a beta of 1.4, interpret its beta value

You have 40,000 to invest in a stock currently priced at 80 a share. The initial margin requirement is 60 percent. Ignoring taxes and commissions show the impact on your rate of return if the stock rises to 100 a share and if it falls to 40 a share assuming (a) you pay cash for the stock, and (b) you buy it using maximum leverage.

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