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Calculating profits on margined and unmargined investments. Claire Gerber wants to buy 3 0 0 shares of Google, which is selling in the market for

Calculating profits on margined and unmargined investments. Claire Gerber wants to
buy 300 shares of Google, which is selling in the market for $537.34 a share. Rather than
liquidate all her savings, she decides to borrow through her broker at 5 percent a year.
Assume that the margin requirement on common stock is 50 percent. If the stock rises to
$625 a share over the next year, calculate the dollar profit and percentage return that Claire
would earn if she makes the investment with 50 percent margin. Contrast these figures to
what she'd make if she uses no margin.
Calculating return on investment. Which of the following would offer the best return on
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