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You purchase 70 shares of Coca-Cola on margin at $50 per share. Assume the initial margin is 50%. The annual interest rate is 8%. If
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You purchase 70 shares of Coca-Cola on margin at $50 per share. Assume the initial margin is 50%. The annual interest rate is 8%. If after one year, the shares increase to $52 and you sell your position, what is your return?
4%
8%
0%
2%
You purchase 70 shares of Coca-Cola on margin at $50 per share. Assume the initial margin is 50%. The annual interest rate is 8%. If after one year, the shares increase to $52 and you sell your position, what is your return?
| 4% | ||
| 8% | ||
| 0% | ||
| 2% |
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