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Tom purchased 561 shares of stock on margin for $29.25 a share and sold the shares 4 months later for $26.21 a share. The initial
Tom purchased 561 shares of stock on margin for $29.25 a share and sold the shares 4 months later for $26.21 a share. The initial margin requirement was 74 percent and the maintenance margin was 33 percent. The interest rate on the margin loan was 7 percent. He received no dividend income. What was his holding period return (in percent)? Answer to two decimals.
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