25. Calculating Short Sale Returns (LO4, CFA5) You just sold short 750 shares of Wetscope, Inc., a...

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25. Calculating Short Sale Returns (LO4, CFA5) You just sold short 750 shares of Wetscope, Inc., a fledgling software firm, at $96 per share. You cover your short when the price hits $86.50 per share one year later. If the company paid $.75 per share in dividends over this period, what is your rate of return on the investment? Assume an initial margin of 60 percent.

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