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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 shares at market price of $ The initial margin is and the maintenance margin is Margin loan has interest rate per year. A year later, the investor sold all the shares at $ 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 $share of dividend at year end. Ans.:
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