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You have $30,000 in a margin account, 60% initial margin required. Suppose you buy 600 shares of IBM, for $50/share. Assume no dividends, and that
You have $30,000 in a margin account, 60% initial margin required. Suppose you buy 600 shares of IBM, for $50/share. Assume no dividends, and that your borrowing rate is 6.1%. What is your percentage return if you did not borrow from your broker and if, in one year, IBM stock is selling for $43 per share?
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