Question: 17 -An investorpurchasedon margin BMI computer for $30 a share. The stock's pricesubsequentlyincreased to $50 a share at which time the investor sold the stock.

17-An investorpurchasedon margin BMI computer for $30 a share. The stock's pricesubsequentlyincreased to $50 a share at which time the investor sold the stock. If the margin requirement is 60 percent and the interest rate on borrowed funds was 7 percent, what would be the percentage earned on the investor's fund (excluding commissions)? What would have been return if the investor had not bought the stock on margin?

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