Question: The current market price is $ 2 5 0 per share, and you have $ 2 2 , 0 0 0 of your own to
The current market price is $ per share, and you have
$ of your own to invest. You borrow an additional $
from your broker at an interest rate of per year and invest
$ in the stock. a What will be your rate of return if the
price of Telecom stock goes down by during the next year? The
stock currently pays no dividends. Negative value should be
indicated by a minus sign. Round your answer to the nearest whole
number. Omit the sign in your response. Rate of return b
How far does the price of Telecom stock have to fall for you to get
a margin call if the maintenance margin is Assume the price
fall happens immediately. Round your answer to decimal places.
Omit the $ sign in your response.
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