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2. A trader opens a brokerage account and purchases 300 shares of ABC stock at $40 per share. She borrows $4,000 from her broker to
2. A trader opens a brokerage account and purchases 300 shares of ABC stock at $40 per share. She borrows $4,000 from her broker to help pay for the purchase at an 8% interest rate on the loan. a. What is the margin on the trader's account when the stock is purchased? If the share price drops to S30 per share by the end of the year, what is the remaining margin in the account? If the maintenance margin requirement is 30%, will the trader receive a margin cal? b. c. What is the rate of return on the investment
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