What is the rate of return on the investment

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Ivy purchased 450 shares of stock FLY at the price of $125 per share. She only paid the amount to satisfy the 60% of initial margin requirement and borrowed the rest from her broker. The maintenance margin requirement is 40%. The broker charges 8% on the margin loan. If the stock price changes from $125 to $102 one year later, what is the rate of return on the investment?

Reference no: EM132826124

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