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Fund H sold short 2 , 0 0 0 shares of DIS stock at $ 1 1 2 per share. The initial margin requirement was

Fund H sold short

2, 000

shares of DIS stock at $

112

per share. The initial margin requirement was

50 % .

Assume that the margin account pays no interest and the stock does not pay dividends. One year later, the price of DIS stock dropped to $

104 .

What is the rate of return on the investment? You should show all calculations to earn full credit. Round your answer to

2

decimal places.

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