the investor has RM8,000 and the stock price is RM30/share

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the investor has RM8,000 and the stock price is RM30/share. The maintanence margin is 30%. The investor borrow RM6,000. The interest rate is 6%.

 

a) What is the percentage margin?

b) calculate the rate of return, if

i) the stock price increase 25%

ii) No chabge

iii) The stock proce falls 35%