The current market price for Keji is $50 per share and you want to buy 200 shares of Keji. You invested $5,000 of your own money and borrowed rest from your broker at an interest rate of 6% per year. The market is doing very well and the Keji stock goes up by 10% during the next year.

Assuming no dividends, what will be your rate of return during next year? a. 8% b.10% c.12% d. 14%

How far does the price of Keji stock have to fall for you to get a margin call if the maintenance margin is? a.30% b.$35.71 c. $38.46 d. $34.72 e. $36.28