Multiple Choice
You purchased 100 shares of common stock on margin for $50 per share. The initial margin is 50%, and the stock pays no dividend. What would your rate of return be if you sell the stock at $56 per share? Ignore interest on margin.
A) 28%
B) 33%
C) 14%
D) 42%
E) 24%
Correct Answer:
Verified
Correct Answer:
Verified
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