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3. Dee Trader opens a brokerage account and purchases 300 shares of Internet Dreams at $50 per share. She borrows $5,000 from her broker to
3. Dee Trader opens a brokerage account and purchases 300 shares of Internet Dreams at $50 per share. She borrows $5,000 from her broker to help pay for the purchase. The interest rate on the loan is 8%. Answer the following: a. What is the margin in Dees account when she first purchases the stock? b. If the share price falls to $40 per share by the end of the year, what is the remaining margin on her account? c. If the maintenance margin requirement is 30%, will she receive a margin call? Explain your answer. d. What is the rate of return on her investment
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