CSUSM opens a brokerage account and purchases 600 shares of CSU at $45 per share. She borrows $6,000 from her broker to help pay for the purchase. The interest rate on the loan is 7%.

o What is the margin in CSUSM account when she first purchases the stock?

o If the share price falls to $40 per share by the end of the year, what is theremaining margin in her account? o If the maintenance margin requirement is 30%, will she receive a margin call?

o What is the rate of return on her investment?