You purchase 200 shares for $50 a share, and after a year the price rises to $70. What is yourpercentage return if you bought the stock on the following margin:a. 50% (ignore commissions, dividends, and interest expense) b. 30% (ignore commissions, dividends, and interest expense) c. 20% (and the borrowing cost was 10% of initial purchase).

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A: Computation:

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