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please show all working out Question 2 You are bullish on Holloway stocks. The current price is 50 per share, and you have 5,000 to
please show all working out
Question 2 You are bullish on Holloway stocks. The current price is 50 per share, and you have 5,000 to invest. You borrow and additional 5,000 from your broker at an interest rate of 8%, to invest a total of 10,000 in the stock. a) What will be your rate of return if the price of Holloway stock goes up to 55, and no dividends are paid? b) If the price falls to a certain level, you will get a margin call from the broker if the maintenance margin is reached. Assume that maintenance margin is 30%. How far does the price have to plummet for the call to be triggeredStep by Step Solution
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