1. Marge wants to buy ABC stock on margin. She has $3,000 to invest, ABC...
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1. Marge wants to buy ABC stock on margin. She has $3,000 to invest, ABC stock sells for $20 per share, the initial margin requirement is 60%, and the maintenance margin is 35%. Marge borrows as much as possible to buy stock. (4) a. If the stock price decreased to $15, what is Marge's holding period return and percentage margin? (2) b. What is the highest price that would trigger a margin call? (2)
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