b. You sell short 200 shares of Mawar Indah Berhad which are currently selling at RM25 per share. You post the 50% margin required on the short sale. If your broker requires a 30% maintenance margin, at what stock price will you get a margin call? (You earn no interest on the funds in your margin account and the firm does not pay any dividend) (4 marks) c. A security has a beta of 1.2. Is this security more or less risky than the market? Explain. i. The market return increases by 15%. (1 mark) ii. The market retu decreases by 8%. (1 mark) iii. The market return remains unchanged. (1 mark) d. Both portfolio O and P are well diversified. The risk free rate is 6%, the expected return on the market is 15%, and the portfolios have these characteristics. For each of the portfolio, identify whether it is undervalued, overvalued or fairly valued. (6 marks) Portfolio O P Expected Return 17.5% 13.5% Beta 1.2 1.00