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What is the percentage return for the investor

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Question - An investor purchases 100 shares of ABC stock at $55 per share on margin. The stock pays an annual dividend of $5. Commissions are 2% of the value of a purchase or sale; the margin requirement is 60%, and the interest rate is 10% annually on borrowed funds. What is the percentage return for the investor if the stock is sold at $60 per share after a one year holding period?

Reference no: EM133026445

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