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An investor is bullish in XYZ stock. He decides to buy 1 , 0 0 0 shares at market price of $ 5 0 .

An investor is bullish in XYZ stock. He decides to buy 1,000 shares at market price of $50.00. The initial margin is 60%, and the maintenance margin is 30%. Margin loan has 5% interest rate per year. A year later, the investor sold all the shares at $51.00 per share. What was his annual rate of return in XYZ stock if the investor did not use margin to trade XYZ stock? He did receive $1/share of dividend at year end. Ans.: ______%
A)4.00
B)3.33
C)1.00
D)2.00

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