Question: (Hard) Your broker's initial margin requirement is 65%, the maintenance margin requirement is 40%, and the broker call rate (interest rate) is 2.3% per year.

 (Hard) Your broker's initial margin requirement is 65%, the maintenance margin

(Hard) Your broker's initial margin requirement is 65%, the maintenance margin requirement is 40%, and the broker call rate (interest rate) is 2.3% per year. You buy 500 shares of stock on margin at $27.24 per share and close your position six months later at $30.22 per share. If the stock paid a quarterly dividend of $0.55 per share, what is your holding period return? 01) 20.41% 2) 16.96% 3) 22.42% 04) 24.96% 5) 18.41%

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