What will your rate of return

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Reference no: EM131575628

Today, you are purchasing 100 shares of stock on margin. The purchase price per share is $35. The initial margin requirement is 70 percent and the maintenance margin is 30 percent. You are charged 6.1 percent for loan. What will your rate of return be if you sell your shares one year from now for $37 a share? Ignore dividends.

Reference no: EM131575628

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