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You buy 400 shares @ $120 per share, using a margin of 70%. The stock pays annual dividends of $2 per share. A margin loan
You buy 400 shares @ $120 per share, using a margin of 70%. The stock pays annual dividends of $2 per share. A margin loan can be obtained at an annual interest rate of 9%. What will be your return if you sell the stock within 9 months for $124 per share. What will be the annualized rate of return?
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