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can someone show me how they reached the answer for both parts please and thank you You are bullish on Telecom stock. The current market
can someone show me how they reached the answer for both parts please and thank you
You are bullish on Telecom stock. The current market price is $10 per share and you have $1,000 or your own to invest. You borrow an additional $1,000 from your broker at an interest rate or 8.5% per year and invest $2,000 in the stock. a. What will be your rate of return it me price of Telecom stock goes up by 10% during the next year? (Ignore the expected dividend) Rate or return % b. How far does the price or Telecom stock have to fall for you to get a margin call it the maintenance margin is 30%? Assume the price fall happens immediately. Stock price rails below $Step by Step Solution
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