Suppose returns, r, have the probability density function given in the image. Which of the following statements is/are correct? (In the event of more than one correct answer, you must choose all correct answers in order to answer correctly.)

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a

Prob(0.01

b

Prob(0.01

c

Prob(0.00

d

Prob(0.01

2. You short 100 shares at 150 dollars per share. The initial margin is 50%. Suppose the maintenance margin is 25%. How high can the share price P become before you receive a margin call.