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2. ABC stock is worth $100 now. In one year, there will either be a 30% increase or decrease in ABC stock price. Suppose you
2. ABC stock is worth $100 now. In one year, there will either be a 30% increase or decrease in ABC stock price. Suppose you have $10000 cash and want to buy ABC on margin. You need to pay a 6% interest to your broker in order to get a loan. Calculate your retum when stock price increase and decrease 30%. (5pts) 2. ABC stock is worth $100 now. In one year, there will either be a 30% increase or decrease in ABC stock price. Suppose you have $10000 cash and want to buy ABC on margin. You need to pay a 6% interest to your broker in order to get a loan. Calculate your retum when stock price increase and decrease 30%. (5pts)
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