a) You purchased 100 shares of IBM common stock on margin at $100 per share. Assume the initial margin is 60% and the maintenance margin is 30%. Below what stock price level (Please round up to 2 decimal places) would you get a margin call? Assume the stock pays no dividend; ignore interest on margin. [5pt]

b) You purchased 30 shares of Intel stock on margin for $60 per share. The initial margin is 50% and the stock pays no dividend. What would be your rate of return (Please round up to 2 decimal places) be if you sell the stock at $50 per share? Ignore interest on margin. [5pt]

c) Assume that there are two risky assets and one risk-free asset in the investment universe. Explain verbally in three sentences or less ONLY (writings beyond three sentences will NOT be graded) how the reward-to-risk ratio of a complete portfolio for an investor with risk aversion A changes if more risky securities are added to the investment universe! [5pt]

d) You are considering investing $1,000 in a T-bill that pays 0.05 and a risky portfolio, P, constructed with two risky securities, X and Y. The weights of X and Y in P are 0.60 and 0.40, respectively. X has an expected rate of return of 0.14 and variance of 0.01, and Y has an expected rate of return of 0.10 and a variance of 0.0081. If you want to form a portfolio with an expected rate of return of 0.10, what percentages of your money must you invest in the T-bill, X, and Y, respectively, if you keep X and Y in the proportions as in portfolio P before (Please round up to 2 decimal places and the answers should be in %)? [5pt]