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An investor sells 100 shares short at $52. The sale requires a margin deposit equal to 55 percent of the proceeds of the short sale.
An investor sells 100 shares short at $52. The sale requires a margin deposit equal to 55 percent of the proceeds of the short sale. The company paid a cash dividend of $1 per share after the investor sold the shares on short. If the investor covered the position at $46 (after the cash dividend was paid out), what was the percentage earned or lost on the investment?
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