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You buy 100 shares of stock XYZ at $50/share on margin. Your broker makes you deposit 50% of the cost into your margin account and
You buy 100 shares of stock XYZ at $50/share on margin. Your broker makes you deposit 50% of the cost into your margin account and you borrow the remaining 50% from your broker at 0% interest. When you close out your position, you sell all 100 shares of XYZ for $45 dollars and repay the loan. What was your return on the investment? (it's not -10%)
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