$($ii$)$ Assume you purchased the shares of the XYZ company listed on the GSE for GHS

$10\mathrm{.}00$ per share. Assume margin trading is allowed and that the margin requirement is $50\%,$

meaning one can pay $50\%$ of the value of shares bought and the remaining amount is paid

with borrowed funds arranged by your broker at $25\%$ per annum. As it is the case, a

commission of $2\mathrm{.}5\%$ is attracted for purchases and sale of shares on the GSE. Assume in

the course of the year XYZ paid dividend of GHSO$\mathrm{.}5$ per share. If the investor sold his

shares in $xYZ$ at the end of one year for GHS$16\mathrm{.}5,$ calculate $($a$)$ the return on the equity of

the investor $($b$)$ the return on the investment of this investor. $(6$ marks$)$

$($iii$)$ Assuming at the end of the year the share price drops from GHS$10\mathrm{.}00$ to GHS$7\mathrm{.}00,$

calculate $($a$)$ the return on investor's equity $($b$)$ the return on investment of the investor.

$(6$ marks$)$