Suppose you expect the stock price of Nutrien Ltd (TSX: NTR) to go up in the near future. The current market price is $50 per share, and you have $5,000 of cash to invest. You borrow an additional $5,000 from your broker at an interest rate of 8% per year and invest $10,000 in the stock.

What will be your rate of return if the price of NTR stock goes up by 10% during the next year? (Ignore the expected dividend.) And what will be your rate of return if the price of NTR stock drops by 10% during the next year?

How far does the price of NTR stock have to fall for you to get a margin call if the minimum margin is 30 percent?