Problem 3 (20 points): After seeing Elon Musk's tweet Am considering taking Tesla private at $420. Funding secured!, you felt very bullish on Tesla. The stock was trading at $400 per share. You had $10,000 of your own to invest. You borrowed an additional $10,000 from Robinhood and invested all in Tesla. Robinhood charges you an interest rate of 5% per year on the margin loan and requires a 25% maintenance margin. 1) How far can Tesla stock price fall before you get a margin call? 2) It turned out that the tweet was misleading, as there was no funding secured for Elon to take Tesla private. The SEC fined Elon for misleading investors. Tesla stock price dropped to $250 upon the news. Would you get a margin call, and for how much? 3) You held on to your Tesla stocks for two years and finally sold them at $2000 per share just before Tesla's 5-to-1 stock split in late 2020. Tesla did not pay any dividend. What is the return on your trading strategy over the two-year holding period? Note: if there is any margin call in part #2, the cash that you deposit to satisfy the margin call adds to the amount of capital you've invested in this position. Assume also that there is no other margin call during the holding period. 4) What is your geometric average yearly return