Question: Part II. Problems 1. You started the year with exactly S10,000. You have a margin account, with a total interest that time. at You bought

Part II. Problems 1. You started the year with exactly S10,000. You have a margin account, with a total interest that time. at You bought 500 shares of Firm ABC that were selling at $12. Firm ABC pays a quarterly dividend of S.25, which you can assume just sits in cash eaming nothing once received You then bought 200 shares of Firm XYZ that were selling at $35, using margin as needed. After exactly one quarter, Firm ABC was selling for $15 and Firm XYZ was selling for $40. You exit your position in XYZ and place all of that money into a market tracking ETF. Over the remaining nine months of the year, the market tracking ETF earns 11%. In addition, at the end of the year, Firm ABC was selling for $19 per share. a. At the end of the year, how much money is in your account? (10 pts)
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
