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Lets assume youre taking a long position for a stock. When the stock price goes up, HPR with margin provides ---- return compared to HPR
Lets assume youre taking a long position for a stock. When the stock price goes up, HPR with margin provides ---- return compared to HPR without margin; and when the stock price goes down, HPR with margin provides ----- loss compared to HPR without margin.
Multiple Choice
A. lower; lower
B. greater; lower
C. greater; greater
D. It depends on the initial margin.
E. lower; greater
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