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You purchase 100 Shares of IBM on margin at $42 per share. Assume the initial margin is 50% and the maintenance margin is 35%. You

You purchase 100 Shares of IBM on margin at $42 per share. Assume the initial margin is 50% and the maintenance margin is 35%. You will get a margin call when the stock price drops to ____________.

$27.30

$21.20

$35.30

$32.30

You short-sell 200 shares of Bruce Wayne Inc. currently trading at $150 per share. Assuming no transaction costs, what is the maximum possible gain?

$15,000

$50

$30,000

Infinite

If an investor requires a real return of 3% and the average inflation rate is 4%, what is the lowest acceptable return for the investor?

7%

2.9%

3%

7.1%

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