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Today, you purchased 500 shares of stock at $48 per share with an initial cash investment of $9,600. The initial margin requirement is 40% and
Today, you purchased 500 shares of stock at $48 per share with an initial cash investment of $9,600. The initial margin requirement is 40% and the maintenance margin is 30%. The call money rate is 5% and you are charged a 1.5% premium over this rate. What will your rate of return be if you sell your shares one year from now for $51 a share. No dividend is paid for this stock.
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