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An investor buys shares in a public company for $75.00 per share, utilizing the maximum available margin of 10%. Assuming the shares increase in value,
An investor buys shares in a public company for $75.00 per share, utilizing the maximum available margin of 10%. Assuming the shares increase in value, this investors return on investment before interest and commission will be:
The same as the return on investment earned by an investor who did not buy on margin | ||
Double the return on investment earned by an investor who did not buy on margin | ||
Cannot be determined | ||
None of the above |
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