Assume a broker permits the use of maximum borrowed funds equal to 50 percent of the market value of the initial position, (i.e. allows the customer to borrow 50% of the stock purchase price) for purchasing equities. Also assume that trader uses the maximum borrowed funds (50%) to buy 200 shares of XYZ at $50 per share. XYZ stocks does not pay dividends. What would the traders return on equity (i.e. the traders personal funds) be if they sold the stock at $62.50 per share one year after purchase. Assume that there is Zero transaction or stock brokerage fees, but that the broker loan rate (the cost of borrowing funds) is equal to 5% per year.