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The current market price of AWZ stock is $40 per share and you have $4000 of your own to invest. You borrow an additional $4000

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The current market price of AWZ stock is $40 per share and you have $4000 of your own to invest. You borrow an additional $4000 from your broker and invest $8,000 in the stock. Assume the interest rate is 4% and maintenance margin is 30%. 1) What will be your rate of return if the price goes up by 8% after 6 months? 2) What is the minimum price before a margin call after a year? Please show your work. HTML Editora B 1 9 A AI = = = = 1 x x = = Ve 12pt Paragraph v

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