Compute the annualized rate of return

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Reference no: EM131155912

Two years ago, you bought 300 shares of Kayleigh Milk Co. for $30 a share with a marginof 60 percent. Currently, the Kayleigh stock is selling for $45 a share. Assuming no dividendsand ignoring commissions, compute

(a) the annualized rate of return on this investmentif you had paid cash, and

(b) your rate of return with the margin purchase.

Reference no: EM131155912

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