your inve S40 per shara oblems and s is the gain oru the stock's price declines to $41 25 percent. (b) SU JULI dends, and interest expense.) 2. Repeat Problem I to determine the percentage return but in this case suppose the price of the stock falls to SA generalization can be inferred from your answers to Prob 3. A stock is currently selling for $45 a share. What is th the following transactions? a. You take a long position and the stock's price decli b. You sell the stock short and the price declines to $415 c. You take a long position and the price rises to $54. d. You sell the stock short and the price rises to $54. 4. A sophisticated investor, B. Graham, sold 500 sharee Inc. at $42 a share. The price of the stock subsequently fore rising to $49 at which time Graham covered the closed the short position). What was the percentage gain o investment? hares short of Am atly fell to $38 the position (tha or loss OTI Inc. for $25.50 cent. If the inter the stock for 334 00 shares of GO rges interest ww A vear ago, Kim Altman purchased 200 shares of LK, Inc, fort margin. At that time the margin requirement was 40 percent est rate on borrowed funds was 9 percent and she sold the sto what is the percentage return on the funds she invested in the su 6. Barbara buys 100 shares of DEM at $35 a share and 200 share at $40 a share. She buys on margin and the broker charges into 10 percent on the loan. a. If the margin requirement is 55 percent, what is the maximum a she can borrow? b. If she buys the stocks using the borrowed money and holds the se ties for a year, how much interest must she pay? c. If after a year she sells DEM for $29 a share and GOP for $32 a sh how much did she lose on her investment? d. What is the percentage loss on the funds she invested if the interes payment is included in the calculation? amoum