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QUESTION 1 Answer the following questions. [20 marks] a) Discuss the difference between a price-weighted index and a value-weighted index. Give one example for the price-weighted index and one example for the value-weighted index and discuss any problemsl'advantages associated with the specic indices. [6 marks] b) Discuss margin buying of common stocks. Include in your discussion the advantages and disadvantages, investors' motivation of employing the margin buying strategy, and the types of margin requirements and how these requirements are met. [8 marks] c) Why are many bonds callable? What is the disadvantage to the investor of a callable bond? How are bond values affected if bonds are callable? [6 marks]