An investor purchased on margin orange computer for 30 a, Ask an Expert

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An investor purchased on margin Orange Computer for $30 a share. The stock's price subsequently increased to $50 a share at which time the investor sold the stock.

If the margin requirement is 50 percent and the interest rate on borrowed funds was 6 percent, what would be the possible maximum percentage return on the investor's funds (excluding commissions)?

What would have been the return if the investor had not bought the stock on margin?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92794328

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