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. You are bullish on Apple stock, which is currently selling at $300 per share. You contribute $2000 and borrow an additional $1000 from your
. You are bullish on Apple stock, which is currently selling at $300 per share. You contribute $2000 and borrow an additional $1000 from your broker at an interest rate of 6% per year and invest $3000 in the stock. (a) What will be your rate of return if the stock price increases 10% during the next year? (b) How far does the stock price have to fall for you to get a margin call if the maintenance margin is 20%? Assume the price fall happens immediately
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