21. The stock of DeForest Inc. traded at the beginning of the year for $70 per share....

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21. The stock of DeForest Inc. traded at the beginning of the year for $70 per share.

At that time Deerfoot Barclay short sold 1,000 shares of the stock. The initial margin requirement was 50%. DeForest stock has risen to $75 at year-end, and Deerfoot faced no margin calls in the interim. Further, the stock paid a $2 dividend at year-end. What was Deerfoot's return on this investment?

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Investments

ISBN: 9788120321014

6th Edition

Authors: William F. Sharpe, Gordon J. Alexander, Jeffery V. Bailey

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