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Problem 4-02

You purchase 170 shares for $60 a share ($10,200), and after a year the price falls to $55. Calculate the percentage return on your investment if you bought the stock on margin and the margin requirement was (ignore commissions, dividends, and interest expense):

1. 15 percent. Use a minus sign to enter the amount as a negative value. Round your answer to one decimal place.

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2. 35 percent. Use a minus sign to enter the amount as a negative value. Round your answer to one decimal place.

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3. 80 percent. Use a minus sign to enter the amount as a negative value. Round your answer to one decimal place.

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