Assume an initial margin requirement of 55 percent and a maintenance margin of 35 percent. An investor buys 200 shares o

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answerhappygod
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Assume an initial margin requirement of 55 percent and a maintenance margin of 35 percent. An investor buys 200 shares o

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Assume an initial margin requirement of 55 percent and a
maintenance margin of 35 percent. An investor buys 200 shares on
margin at $40 per share. The stock pays a dividend of $1.20 per
share. The brokerage commission is $10 to buy and $10 to sell. The
interest rate on margin borrowing is 4%. One year later you sell
the stock for $30 per share. Your return equals
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