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Suppose a stock currently has a market price of $75 per share. At that price, you can afford to buy 500 shares. The initial margin
Suppose a stock currently has a market price of $75 per share. At that price, you can afford to buy 500 shares. The initial margin of a stock is 50%. One year later, you sell the stock for $105 per share. Assuming you borrowed the maximum amount, and that the margin interest rate is 10%, what was your return on the stock?
26%
40%
70%
80%
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