Question: Question 5 in the assignment entailed borrowing (asset 4 was the risk-free asset) to invest in asset 1. In other words, you were margin trading

Question 5 in the assignment entailed borrowing (asset 4 was the risk-free asset) to invest in asset 1. In other words, you were margin trading to invest in asset 1.

  1. a) Calculate your margin at the end of every month. When, if ever, do you receive a margin call?Question 5 in the assignment entailed borrowing (asset 4 was the risk-freeUusing the excel to solve the above question, thanks!

  2. How can I calculate the margin and margin call?

short $100 of asset 4 and use those $100 plus $100 to invest in asset 1 Date Asset 1 Asset 4 Sum Return rate 12 month return Year Annual return 192612 200 -100 100 1927 0.577769901 192701 199.88 -100.25 99.63 -0.0037 1928 0.697386191 0.081 -0.0004 0.0067 1929 1930 1931 192702 207.589068 -99.889038 107.70003 192703 215.6800801 -108.02313 107.65695 192704 216.3043439 -107.926092 108.3782516 192705 228.5480569 -108.703386 119.8446706 192706 234.0806106 -120.156267 113.9243438 192707 244.3905024 -114.266117 130.1243855 192708 265.3756719 -130.488734 134.886938 192709 282.6151126 -135.170201 147.444912 192710 282.1800725 -147.813524 134.3665483 192711 286.4157343 -134.648718 151.7670163 192712 309.8778939 -152.100904 157.7769901 0.1058 -0.0494 0.1422 1932 1933 -0.439181405 -0.569511946 -0.775712453 -0.402961688 0.98245136 0.013202065 1.037370163 0.696262736 -0.603836604 1934 1935 1936 0.0366 0.0931 -0.0887 0.1295 0.0396 1937 1938 1939 0.387800022 -0.014712153 0.577769901 short $100 of asset 4 and use those $100 plus $100 to invest in asset 1 Date Asset 1 Asset 4 Sum Return rate 12 month return Year Annual return 192612 200 -100 100 1927 0.577769901 192701 199.88 -100.25 99.63 -0.0037 1928 0.697386191 0.081 -0.0004 0.0067 1929 1930 1931 192702 207.589068 -99.889038 107.70003 192703 215.6800801 -108.02313 107.65695 192704 216.3043439 -107.926092 108.3782516 192705 228.5480569 -108.703386 119.8446706 192706 234.0806106 -120.156267 113.9243438 192707 244.3905024 -114.266117 130.1243855 192708 265.3756719 -130.488734 134.886938 192709 282.6151126 -135.170201 147.444912 192710 282.1800725 -147.813524 134.3665483 192711 286.4157343 -134.648718 151.7670163 192712 309.8778939 -152.100904 157.7769901 0.1058 -0.0494 0.1422 1932 1933 -0.439181405 -0.569511946 -0.775712453 -0.402961688 0.98245136 0.013202065 1.037370163 0.696262736 -0.603836604 1934 1935 1936 0.0366 0.0931 -0.0887 0.1295 0.0396 1937 1938 1939 0.387800022 -0.014712153 0.577769901

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