Question 3 20 marks) Use the following information for parts A to B. Mr. Smith's investment return for last year was 12% (nominal return). Inflation rate for the same period was 2.4%. Mr. Smith has to pay 35% tax on his investment return. . Calculate the after-tax real rate of return of Mr. Smith's investment? (3 marks) Suppose Mr. Smith requires an after-tax real rate of return of 11.8%. Calculate the before tax nominal return rate Mr. Smith should look for. (4 marks) Mr. Jones buys 6,000 shares of stock AA at the price of $120 per share on margin He pays 30% of the total cost and borrows the rest from his stock broker. If the maintenance margin is 20%, at what stock price level will the maintenance margin level be reached? (marks) . Explain what a stop sell order is. Give an example. (3 marks) . What view would the investor have on the stock price if he places a stop sell order to sell stocks