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Kathy Smith has a margin account with a balance of $60,000. Initial margin requirements are 60 percent, and Tesla stock is currently selling at $400
Kathy Smith has a margin account with a balance of $60,000. Initial margin requirements are 60 percent, and Tesla stock is currently selling at $400 per share. Based on this information, how many shares of Tesla can Kathy buy using the full margin? If stock price increases to $425 per share and Kathy closes her margin position, what will be rate of return on her investment? Show detail steps of calculations.
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