You purchase 120 shares for

$70

a share

($8,400)

, and after a year the price rises to

$80

. What is the percentage return on your investment if you bought the stock on margin and the margin requirement was

20%

. (ignore commissions, dividends, and interest expense):\

40.8%

You purchase 120 shares for $70 a share ($8,400), and after a year the price rises to $80. What is the percentage return on your investment if you bought the stock on margin and the margin requirement was 20%. (ignore commissions, dividends, and interest expense): 40.8%