32. You are bullish on Telecom stock. The current market price is $50 per share, and you have $6,900 of your own to invest. You borrow an additional $5,100 from your broker at an interest rate of 6% per year and invest $12,000 in the stock.,a. What will be your rate of return if the price of Telecom stock goes up by 15% during the next year? (ignore dividend),b. How far does the price of Telecom stock have to fall for you to get a margin call if the maintenance margin is 40%? Assume the price fall happens immediately.
Regent Papers is a library of common essays on high school, college, undergraduate and postgraduate topics. We have collected top papers from various institution, students and professors. The papers are based on common essay topics in all subjects.