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An investor buys $10,000 worth of stock priced at $40 per share using 60% initial margin. The broker charges 10% on the margin loan and

An investor buys $10,000 worth of stock priced at $40 per share using 60% initial margin. The broker charges 10% on the margin loan and requires a 35% maintenance margin. The stock pays $2.00-per share dividend in 1 year, and then the stock is sold at $50 per share. What was the investors rate of return?

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