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Leverage Effect of Trading on Margins Downside: No margin: Purchase 100 shares @ $50 and sell them @ $30 in 1 year. Profit = ?

Leverage Effect of Trading on Margins

Downside: No margin: Purchase 100 shares @ $50 and sell them @ $30 in 1 year. Profit = ? & Return = ?

Margin: Purchase 200 shares @ $50 by borrowing $5000 at 9%. Sell 200 shares @ $30 in 1 year Profit = ? Return = ?

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