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You Purchased 100 Shares of Common Stock on Margin for $35

Question 51

Multiple Choice

You purchased 100 shares of common stock on margin for $35 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 $42 per share? Ignore interest on margin.


A) 28%
B) 33%
C) 14%
D) 40%
E) 24%

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