7) You are bullish on Curious Inc. stock and decide to purchase 200 shares at $55 per share. To do the transaction, you borrowed $4500 from your broker on 4% interest. Date Close LG 6-Sep-21 $ 0.385 Dividend 32.91 5-Sep-21 33.22 4-Sep-21 32.89 3-Sep-21 32.72 a) What is your initial margin when you purchase the stocks? b) What is the remaining margin on your account, if the share price drops to $32 a year later? Will you get a margin call, if the maintenance margin is 35%? c) What is the rate of return on your investment?

8) Suppose you short sell 120 shares of MSFT, now selling at $31 per share. The initial margin of your purchase is 60% and the maintenance margin is 35%. At what stock price will you receive a margin call?

9) The Husky Funds portfolio consists of the following stocks at the beginning of the year: Stock Shares Price ( respectively ) IBM 500shares 180.00$ MSFT 4,000shares 30.00$ There are 5000 shares outstanding. The fund charges 6% front-end load. The first year, the funds assets value increases by 10% and the fund pays out $10,000 as distributions to its investors. The fund charges management fees of .5% and 12b-1 fees of .5%. a) What is the funds NAV at the beginning and at the end of the first year? b) What is the reported return of the mutual fund in the first year? c) Suppose the mutual funds return stays the same each year. What is the return to an investor investing in the fund for 10 years?