14. The current market price of a stock is $40 per share, and you have $8,000 of your own to invest. You borrow an additional $8,000 from your broker at an interest rate of 4.0% per year and invest $16,000 in the stock. a.) What will be your rate of return if the price of the stock goes up by 6.0% during the next year? b.) How far does the price of the stock have to fall for you to get a margin call if the maintenance margin is 30%? Assume the price fall happens immediately. 15. You are bearish on a technology stock and decide to sell short 100 shares at the current market price of $36.00 per share. a.) How much in cash or securities must you put into your brokerage account if the broker's initial margin requirement is 50% of the value of the short position b.) How high can the price of the stock go before you get a margin call if the maintenance margin is 30% of the value of the short position? 16. Suppose that a technology stock is currently selling at S50 per share. You buy 800 shares using $30,000 of your own money, borrowing the remainder of the purchase price from your broker. The rate on the margin loan is 8% 18 word LL