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I need the answers step by step course : Investment Management Long Povition. Suppose you buy 200 shares of stock initially selling at $25 per
I need the answers step by step
Long Povition. Suppose you buy 200 shares of stock initially selling at $25 per share, your leverage ratio is 1.3333 You pay an interest rate of 8% on margin loans. The stock pays $0.6 per share as dividend during the holding period. maintenance margin 35% 1. How much of your own money do you invest? ( 0.5 mark) 2. How much do you borrow from your broker? (0.5 mark) (1) 3. What is your margin call price (2) 3. What will be your rate of return at the end of a 6 month holding period if the price went down to $20 or up to $80 (3) marks) (3) 4. If you is your actual margin and equity in both scenarios (2)40005000+(0.60 4. If you buy the stock from your own money, without using broker's funds, what will be your rate of return at the end of a 6 month holding period if the price is $20 (1) course : Investment Management
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