博迪_投资学第九版_英文答案(15)

博迪_投资学第九版_英文答案

b. The value of the 500 shares is 500P. Equity is (500P – $5,000). You will receive a margin call when:

500P $5,000= 0.25 when P = $13.33 or lower 500P

c. The value of the 500 shares is 500P. But now you have borrowed $10,000

instead of $5,000. Therefore, equity is (500P – $10,000). You will receive a margin call when:

500P $10,000= 0.25 when P = $26.67 or lower 500P

With less equity in the account, you are far more vulnerable to a margin call.

d. By the end of the year, the amount of the loan owed to the broker grows to:

$5,000 × 1.08 = $5,400

The equity in your account is (500P – $5,400). Initial equity was $15,000.

Therefore, your rate of return after one year is as follows: (i)

(ii)

(iii)(500×$44) $5,400 $15,000= 0.1067 = 10.67% $15,000(500×$40) $5,400 $15,000= –0.0267 = –2.67% $15,000(500×$36) $5,400 $15,000= –0.1600 = –16.00% $15,000

The relationship between the percentage return and the percentage change in

the price of Intel is given by: Total investment Funds borrowed % return = % change in price× 8%× Investor's initial equityInvestor'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:

$20,000 $5,000 10%× 8%× =10.67% $15,000 $15,000

e. The value of the 500 shares is 500P. Equity is (500P – $5,400). You will receive a margin call when:

500P $5,400= 0.25 when P = $14.40 or lower 500P