1. Suppose you invest $1000 of your own money and borrow the maximum amount available to you on margin and also invest that money. The initial maintenance requirement is 50%.

1. (10 points) What is the total amount invested?
2. (10 points) The asset you purchase immediately goes up 8%. What is the return on your invested money?
3. (10 points) Instead of what happens in (b) above, the price of the asset rises 16% over the first year. You pay 5% interest on your margin account. What is the return on your investment?
4. (10 points) If the stock price was originally $10/share and the maintenance margin is 30%, what is the lowest the stock price can go before there is a margin call?