An investor buys 400 shares of ABC Company at $33 per share on margin. The interest on the loan and the dividend are paid at the end of the holding period. The leverage ratio is 2.67 and commission is $0.06 per share. He holds the shares for six months and then sells them at $35 per share. The call money rate is 4% per year and dividend is $0.30 per share. The investor’s total return on the investment over the margin holding period is closest to:
