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4) You short sell 200 shares of xyz for $100. Margin requirement is 60% interest on margin loan is 6% and interest on deposit is
4) You short sell 200 shares of xyz for $100. Margin requirement is 60% interest on margin loan is 6% and interest on deposit is 4%. Commission for purchase and sale is 2%.. During the year stock pays 0.80/share dividend. A year later you buy back the stocks for $75 and return them to the broker. Calculate the ROE
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