Assuming to purchase 5,000 shares of XYZ company at price of $75/share. Minimum margin deposit required is 30% and margin load therefore is (1-30% = 70%).

Money rate (margin borrowing rate is 15% p.a.

The stocks are sold in 8 months after receiving dividends of $12/share (DPS).

Calculate annualized rate of return with margin and without margin: 1) If the stock selling price is $96/share

2) If the stock selling p rice is $61/share