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Part 1a: Suppose you take out a margin loan for $79,000. You pay a 7.2 percent effective rate. If you repay the loan in three

Part 1a: Suppose you take out a margin loan for $79,000. You pay a 7.2 percent effective rate. If you repay the loan in three months, how much interest will you pay?

Part 1b: Suppose you hold a particular investment for 7 months. You calculate that your holding period return is 5.2 percent. What is your annualized return?

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