Allan purchased 750 shares of stock on margin for $18.50 a s…
Allan purchased 750 shares of stock on margin for $18.50 a share and sold the shares twelve months later for $20.40 a share. The initial margin requirement was 55 percent and the maintenance margin was 45 percent. The interest rate on the margin loan was 6.4 percent. He received no dividend income. What was his rate of return?
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