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Carry intermediate calculations to at least four decimal places unless instructed differently by the individual question. Tom purchased 482 shares of stock on margin for
Carry intermediate calculations to at least four decimal places unless instructed differently by the individual question.
Tom purchased 482 shares of stock on margin for $28.32 a share and sold the shares 5 months later for $28.9 a share. The initial margin requirement was 64 percent and the maintenance margin was 31 percent. The interest rate on the margin loan was 9 percent. He received no dividend income. What was his holding period return (in percent)? Answer to two decimals.
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