Suppose that Nocetti Inc. is currently selling at

$50

per share.\ a. How much will it cost you to buy 500 shares?\ b. Create a data table in Excel summarizing your rate of return in one year allowing year-end price to range from

$25

to

$75

at

$2.50

increments.\ c. Plot the price of the stock against the rate of return. Make sure to label the

x

- an axis.\ d. Now assume you buy 500 shares borrowing

25%

of the necessary funds from yo broker; that is the initial margin on your position in

25%

. Your broker charges a interest rate of

8%

on margin loans. How much of your own money do you inve How much do you borrow from your broker?\ e. Create a data table in Excel summarizing your rate of return in one year allowin year-end price to range from

$25

to

$75

at

$2.50

increments.\ f. Plot the price of the stock against the rate of return assuming you use your marg account. Make sure to label the

x

- and

y

-axis.\ g. Discuss the advantages and disadvantages of trading using margin.

Suppose that Nocetti Inc. is currently selling at $50 per share. a. How much will it cost you to buy 500 shares? b. Create a data table in Excel summarizing your rate of return in one year allowin year-end price to range from $25 to $75 at $2.50 increments. c. Plot the price of the stock against the rate of return. Make sure to label the x - an axis. d. Now assume you buy 500 shares borrowing 25% of the necessary funds from yc broker; that is the initial margin on your position in 25%. Your broker charges a interest rate of 8% on margin loans. How much of your own money do you inv How much do you borrow from your broker? e. Create a data table in Excel summarizing your rate of return in one year allowin year-end price to range from $25 to $75 at $2.50 increments. f. Plot the price of the stock against the rate of return assuming you use your marg account. Make sure to label the x - and y-axis. g. Discuss the advantages and disadvantages of trading using margin