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Suppose that Intel is currently selling at $20 per share. You buy 1,000 shares using $15,000 of your own money, borrowing the remainder of the
Suppose that Intel is currently selling at $20 per share. You buy 1,000 shares using $15,000 of your own money, borrowing the remainder of the purchase price from the broker. The rate on the margin loan is 8%. a) What is the percentage increase in the net worth of your brokerage account if the price of Intel immediately changes to: (i) $22?
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