1. Choose a stock from NYSE or NASDAQ not chosen by other students. Assume you have shorted 1000 shares of that stock six months ago. Assume you cover your short at the time of your posting during this week. Estimate your dollar profits and loss. (You need to find out from yahoo.com your stocks price six months ago, you shorted for six months at the time of covering your short). Ignore commission.
2. Choose the same stock above or another publicly-traded company. Assume you had bought 1000 shares of that stock on the close of the market six months ago. Assume at the time of purchase you borrowed 50 percent of total investment from your broker (Margin account). Assume you sell your 1000 shares at the time of your posting during this week. Assuming your broker call money rate is 8% per year, what is your holding period return in percent? What is your annualized return in percent? Ignore transaction costs. You need to find out from yahoo.com your stocks price six months prior to the day you sell your stock.