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Today, you are purchasing 100 shares of stock on margin. The purchase price per share is $35. The initial margin requirement is 70 percent, and
Today, you are purchasing 100 shares of stock on margin. The purchase price per share is $35. The initial margin requirement is 70 percent, and the maintenance margin is 30 percent. The combined call money rate and broker rate is 6.1%. What will your rate of return be if you sell your shares one year from now for $37 a share?
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