You purchased 100 shares of amazon common stock on margin, Finance Basics

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You purchased 100 shares of amazon common stock on margin

Question: You purchased 100 shares of Amazon common stock on margin at $552.52 per share. Assume the initial margin is 50% and the maintenance margin is 30%. One year later, the stock price closes at $808.33. If the broker's call loan rate is 2.00%, what is your return on equity? Note that Amazon pays no dividends.

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Finance Basics: You purchased 100 shares of amazon common stock on margin

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