1. You pay $22,800 to the Laramie Fund, which has a NAV of $15 per share at the beginning of the year. The fund deducted a front-end load of 6%. The securities in the fund increased in value by 10% during the year. The fund's expense ratio is 1.3% and is deducted from year-end asset values. What is your rate of return on the fund if you sell your shares at the end of the year?

2.

You sell short 600 shares of Microsoft that are currently selling at $60 per share. You post the 50% margin required on the short sale. If you earn no interest on the funds in your margin account, what will be your rate of return after 1 year if Microsoft is selling at $57? (Ignore any dividends.)