You wish to contribute a $$24,000$ deposit towards a margin loan from the Ellas Investment Bank Ltd$.$ This margin loan has a Loan to Value $($LVR$)$ ratio of $70\%.$

What is the maximum amount you could borrow using this margin loan?

Answer $1$ Question $9$

Estimate the portfolio value assuming you borrow the maximum amount allowed under this margin loan?

Answer $2$ Question $9$

There is a $10\%$ buffer associated with this margin loan. Assuming you have borrowed the maximum allowed amount, what is the buffer amount, assuming no change in the underlying portfolio value?

Answer $3$ Question $9$

Assuming a decline in the value of your portfolio by $12\%,$ what is the dollar value of your portfolio?

Answer $4$ Question $9$

Would this $12\%$ decline in your portfolio value trigger a margin call?

Answer $5$ Question $9$