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2. You are bullish on RVH stock. The current market price is $50 per share, and you have $600,000 of your own to invest. You

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2. You are bullish on RVH stock. The current market price is $50 per share, and you have $600,000 of your own to invest. You borrow an additional $400,000 from your broker at an interest rate of 3% per week and invest $1,000,000 in the stock. RVH pays no dividends. a. Suppose the price of RVH stock falls immediately after your purchase. The maintenance margin is 30%. How low can the price of RVH stock fall before you receive a margin call? b. Suppose a week has passed. What is your rate of return if the price of RVH stock has gone up by 20%? (10 marks)

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