A stock has a current price of 50 an investor purchases the, Ask an Expert

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A stock has a current price of $50. An investor purchases the stock by posting 25% margin.

a. Compute the stock price at which the investor will receive a margin call if the maintenance margin is 20%.

b. Compute the rate of return for this margin transaction if the price increases to $52.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M93059809

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