1. An investor buys 300 shares of stock selling at $110 per share using a 60% initial margin and a 30% maintenance margin. The stock does not pay a dividend. A margin loan can be obtained at an annual interest rate of 5%. What is the annualized return on invested capital if the stock price gradually increases to $124 at the end of one year? (include the interest on the margin loan.)

Annualized rate of return = _________________________%