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You Purchased 250 Shares on Margin for $25 Per Share

Question 5

Multiple Choice

You purchased 250 shares on margin for $25 per share. The initial margin is 65% and the share pays no dividend. Your rate of return would be ________ if you sell the share at $32 per share. (Ignore interest on margin.)


A) 35%
B) 39%
C) 43%
D) 28%

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