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Fernando Jones sells short common stock in Alpha Communications for $2,082. There is a 60% margin requirement, and the margin accountpays interest at an annual
Fernando Jones sells short common stock in Alpha Communications for $2,082. There is a 60% margin requirement, and the margin accountpays interest at an annual effective rate of 3.2%. The stock price goesup by 2% during the next year, and dividends of $84 are declared at theend of six months. If Fernando closes out his short position at the endof the year, what is his yield for the one-year investment
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