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6 You are bullish on Google stock. The current market price is $10 per share, and you have $1,000 of your own to invest. You
6 You are bullish on Google stock. The current market price is $10 per share, and you have $1,000 of your own to invest. You borrow an additional $1,000 from your broker at an interest rate of 8.5% per year and invest $2,000 in the stock. a. What will be your rate of return if the price of Google stock goes up by 10% during the next year? (Ignore the expected dividend.) (Round your answer to 2 decimal places.) 8 02:04:57 Rate of return % b. How far does the price of Google stock have to fall for you to get a margin call if the maintenance margin is 30%? Assume the price fall happens immediately. (Round your answer to 2 decimal places.) Stock price falls below
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