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You are bullish on Telecom stock. The current market price is$10 per share, and you have $1,000 of your own to invest. Youborrow an additional $1,000 from your broker at an interest rate of8.5% per year and invest $2,000 in the stock.a. What will be your rate of return if theprice of Telecom stock goes up by 10% during the next year? (Ignorethe expected dividend.) (Round your answer to 2 decimalplaces.)Rate of return %b. How far does the price of Telecom stock haveto fall for you to get a margin call if the maintenance margin is30%? Assume the price fall happens immediately. (Round youranswer to 2 decimal places.)Stock price falls below $
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