2. a. i. What is a secondary market? ii. State the two main functions of the securities market. b. Differentiate between systematic and unsystematic risks. c. An investor acquires 5000 shares of MTN at C10 per share. If the initial margin requirement is 50% i. What is the amount of investor's equity and how much is he allowed to borrow? ii. What is the actual margin percentage? iii. If stock price increases by 20%, what is the investor's equity position? iv. If stock price declines by 25%, what is the investor's equity? d. On January 1, 2015, Nii bought stocks of Naa Company valued at C10m. He sold his stocks for C15m at the end of 2015. During the period, he received a cash dividend of Clm which attracts an income tax of 12%. He is also supposed to pay a capital gains tax of 7%. i. Calculate the rate of return before tax. ii. Calculate the rate of return after tax. e. An investor purchases stocks with a rate of return of 35%. If the annual inflation rate in the economy is 15%, determine the real rate of return on the stock.