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Old Economy Traders opened an account to buy 1,000 shares of Internet Dreams at $40 per share. The initial margin requirement was 50%, and interest
Old Economy Traders opened an account to buy 1,000 shares of Internet Dreams at $40 per share. The initial margin requirement was 50%, and interest on margin loan is 8%. A year later, the price of Internet Dreams has risen from $40 to $50, what is Old Economy Traders' return on equity
42% |
25% |
-50% |
50% |
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