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Suppose a stock currently has a market price of $20 per share. At that price, you can only afford to buy $100 shares. The initial
Suppose a stock currently has a market price of $20 per share. At that price, you can only afford to buy $100 shares. The initial margin of a stock is 50%. One year later, you sell the stock for $30 per share. Assuming you borrowed the maximum amount, and that the margin interest rate is 0, what was your return on the stock?
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