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You purchased 250 shares of common stock on margin for $28 per share. The initial margin is 70% and the stock pays no dividend but

You purchased 250 shares of common stock on margin for $28 per share. The initial margin is 70% and the stock pays no dividend but has a trading cost of $0.1 per share. Your rate of return would be __________ if you sell the stock at $36 per share. Ignore interest on margin.

(2 Points)

40.81%

40.30%

40.00%

42.85%

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