You are bullish on Telecom stock. The current market price is $$250$ per share, and you have $$20,000$ of your own to invest. You

borrow an additional $$20,000$ from your broker at an interest rate of $8\%$ per year and invest $$40,000$ in the stock.

a$.$ What will be your rate of return if the price of Telecom stock goes down by $7\%$ during the next year? The stock currently pays no

dividends. $($Negative value should be indicated by a minus sign. Enter your answer as a percent rounded to the nearest whole

number.$)$

Answer is complete but not entirely correct.

Rate of return

$6$

b$.$ How far does the price of Telecom stock have to fall for you to get a margin call if the maintenance margin is $30\%?$ Assume the price

fall happens immediately. $($Round your answer to $2$ decimal places.$)$

Answer is complete but not entirely correct.