博迪_投资学第九版_英文答案(14)

博迪_投资学第九版_英文答案

9. a. You buy 200 shares of Telecom for $10,000. These shares increase in value by

10%, or $1,000. You pay interest of: 0.08 × $5,000 = $400

The rate of return will be:$1,000 $400

$5,000 0.1212%

b. The value of the 200 shares is 200P. Equity is (200P – $5,000). You will receive a margin call when:

200P $5,000= 0.30 when P = $35.71 or lower 200P

10. a.

b. Initial margin is 50% of $5,000 or $2,500. Total assets are $7,500 ($5,000 from the sale of the stock and $2,500 put up for

margin). Liabilities are 100P. Therefore, equity is ($7,500 – 100P). A margin call will be issued when:

$7,500 100P= 0.30 when P = $57.69 or higher 100P

11. The total cost of the purchase is: $40 × 500 = $20,000

You borrow $5,000 from your broker, and invest $15,000 of your own funds.

Your margin account starts out with equity of $15,000. ==

a. (i) Equity increases to: ($44 × 500) – $5,000 = $17,000

Percentage gain = $2,000/$15,000 = 0.1333 = 13.33%

(ii) With price unchanged, equity is unchanged.

Percentage gain = zero

(iii) Equity falls to ($36 × 500) – $5,000 = $13,000

Percentage gain = (–$2,000/$15,000) = –0.1333 = –13.33%

The relationship between the percentage return and the percentage change in

the price of the stock is given by:

% return = % change in price × Total investment= % change in price × 1.333 Investor's initial equity

For example, when the stock price rises from $40 to $44, the percentage change in price is 10%, while the percentage gain for the investor is:

% return = 10% × $20,000= 13.33% $15,000