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Alphabet (tic:GOOGL) is likely overvalued and so, Kim decided to short 59 shares. When she opened the position the price of GOOGL was $1,540. The
Alphabet (tic:GOOGL) is likely overvalued and so, Kim decided to short 59 shares. When she opened the position the price of GOOGL was $1,540. The current price of GOOGL is $1,355. The initial margin is 48%. Compute the return over equity.
(Note: you need to find out how much cash Kim had to put to open the position in order to answer the question).
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