Question: 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

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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