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Suppose you can buy 950 shares of Vertex Pharmaceuticals Incorporated (VRTX) stock on margin at $164 per share. Your initial margin is 52% and you
Suppose you can buy 950 shares of Vertex Pharmaceuticals Incorporated (VRTX) stock on margin at $164 per share. Your initial margin is 52% and you borrow at the 8 percent. You sell your VRTX shares 9 months later for $156 per share. There were no dividends paid and the prices reflect commissions paid. What is your percent return if you buy on margin?
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