1. Consider an equally-weighted industry index in the stock market that consists of three stocks A, B, and C. The index level is 1000 on Feb 27th, 2020, and the daily stock returns for the three stocks are 10%, -6%, and 2% on that day. The market capitaliza- tion of the three are $300 million, $400 million, and $500 million. What is the index level on Feb 28th, 2020? (5 pts) 2. Suppose you use $5000 of your own cash and a loan of $5000 from your broker to purchase 100 shares of stock TER at $100/share. Unfortunately the stock price starts to drop after your purchase. If your broker has a maintenance margin of 30%, at what price will you receive a margin call? (10 pts) 1. Consider an equally-weighted industry index in the stock market that consists of three stocks A, B, and C. The index level is 1000 on Feb 27th, 2020, and the daily stock returns for the three stocks are 10%, -6%, and 2% on that day. The market capitaliza- tion of the three are $300 million, $400 million, and $500 million. What is the index level on Feb 28th, 2020? (5 pts) 2. Suppose you use $5000 of your own cash and a loan of $5000 from your broker to purchase 100 shares of stock TER at $100/share. Unfortunately the stock price starts to drop after your purchase. If your broker has a maintenance margin of 30%, at what price will you receive a margin call? (10 pts)