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16. You sell short 400 shares of ABC stock. Its current price $20 per share. If you wish to limit your loss to $2,000, you

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16. You sell short 400 shares of ABC stock. Its current price $20 per share. If you wish to limit your loss to $2,000, you should place a stop-buy order at 14. You sell short 300 shares of ABC. Its current price is $30 per share. You post the 50% margin required on the short sale. The maintenance margin is 35%. What will be your rate of return after one year if ABC is selling at $24?*

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