1. Buving stock on margin) The minimum initial margin as established by the Federal Reserve is 50%. Suppose the maintenance margin set by your broker is 40%. You have $10,000 in cash that you are able to invest in stock XYZ which is currently selling for S20 per share. The stock pays no dividends. (a) If you buy XYZ on margin, what is the maximum number of shares that you can purchase? (b) In part (a), ignoring interest expenses, at what stock price (to 2 decimal places will you get a margin call? (c) Suppose the share price falls to the value computed in part (b). Instead of depositing additional cash to your brokerage account, you are able to sell stock XYZ at that price and take the loss What percentage loss( are you going to realize if this bad scenario happens? (d) Instead of going down, suppose the stock price actually goes up from S20 per share to $30 per share over a one-year holding period. For your margin account, the borrowing interest rate is 5% per annum. What is the percentage return (%) on your initial investment of $10,000 in this scenario