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You decide to purchase 100 shares of QRS common stock at $50 per share, financing most of the purchase with your own funds and borrowing
You decide to purchase 100 shares of QRS common stock at $50 per share, financing most of the purchase with your own funds and borrowing the rest of the necessary funds. If your initial margin is 60% and your broker has set a maintenance margin at 55%, what is your rate of return on the margin position if the stock price falls to $53 and you paid $100 in interest to your broker (assume no dividends are paid)
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