Question: Katty bought a stock at $40 per share using 60% initial margin. The broker charges 8% on the loan and requires a 35% maintenance margin.

Katty bought a stock at $40 per share using 60% initial margin. The broker charges 8% on the loan and requires a 35% maintenance margin. Chase paid $1.00 per share dividend over the year. Now the stock is at $46 per share. What is katty's rate of return?

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