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c. Assume margin trading is allowed on the Ghana Stock Exchange (GSE) and that you are paying GHS12,000 towards the purchase of GHS20,000 worth of

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c. Assume margin trading is allowed on the Ghana Stock Exchange (GSE) and that you are paying GHS12,000 towards the purchase of GHS20,000 worth of shares (1000 shares at GHS20 per share), borrowing the remaining GHS8000 from your broker at 25% per annum. (1) If the maintenance call is 35%, calculate how far the price will have to fall before you get a margin call. 4 marks (ii) What will be your rate of return if the stock price goes up by 30% by the end of one year? 4 marks (iii) What will be your rate of return if the stock price should remain the same after one year? 4 marks (iv) What will the rate of return be should the price of the stock fall by 30% by the end of one year? 4marks

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