4. Leverage (LO4, CFA5) You deposit $100,000 cash in a brokerage account and short sell

$200,000 of stocks. Later, the value of the stocks held short rises to $250,000, whereupon you get nervous and close your account. What is the percentage return on your investment?

a. 0 percent

b. −25 percent

c. −50 percent

d. −75 percent