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An investor purchased shares with a market price of $70 when the initial margin requirement was 60%. If the price increases to $92, the investor's
An investor purchased shares with a market price of $70 when the initial margin requirement was 60%. If the price increases to $92, the investor's return, ignoring dividends and interest, is closest to:
a. 31%.
b. 44%.
c. 52%.
d. 120%.
Stock purchases with a 50% initial margin and a 30% maintenance margin will be called at a:
a. 15% decrease in the price of the stock.
b. 25% decrease in the price of the stock.
c. 28.6% decrease in the price of the stock.
d. 20% decrease in the price of the stock.
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