Problem 2-14 Margin and Leverage (L03, CFA4) Suppose you purchase 1,000 shares of stock at $80 per share with an initial cash investment of $40,000. The call money rate is 5 percent and you are charged a 1.5 percent premium over this rate. lgnore dividends. a. Calculate your return on investment one year later if the share price is $88. Suppose instead you had simply purchased $40,000 of stock with no margin. What would your rate of return have been now? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) Rate of Return With margin Without margin