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Suppose an investor is optimistic on ABC stock, which is currently selling at $ 1 0 0 per share with the initial margin requirement of

Suppose an investor is optimistic on ABC stock, which is currently selling at $100 per share with the initial margin requirement of 50%. The investor has $5,000 to invest borrowing the maximum remaining from the broker, and expects the stock to go up in price by 30% during the next year. Ignoring any dividends and commissions, the expected rate of return on the investment would be:
30%
40%
50%
60%

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