1. You are bearish on GPL and decide to sell short 1,000 shares at the current market price of $84 per share. GPL pays no dividends. a. How much in cash or securities must you put into your brokerage account if the initial margin requirement is 70%? b. If you earn no interest on the funds in your margin account, what will be your rate of return after a week if GPL is selling at $70 per share? c. How high can the price of the stock go before you get a margin call if the maintenance margin is 30%? (10 marks) 2. An analyst gathers the following data. Stock FZB splits two-for-one during the period. Stock DXA FZB HYC Beginning of Period Price ($) Shares 28 10000 112 200 56 2500 End of Period Price ($) Shares 44.8 10000 63 400 58.8 2500 a. Calculate the returns on both the price-weighted index and the market value- weighted index of three stocks over the period. b. Explain the difference in returns between the two indexes. (10 marks)