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Please, the numbers must be exact or the website will mark them wrong. Thank you so much!! You decide to sell short 100 shares of

Please, the numbers must be exact or the website will mark them wrong. Thank you so much!!

You decide to sell short 100 shares of Charlotte Horse Farms when it is selling at its yearly high of $52. Your broker tells you that your margin requirement is 55 percent and that the commission on the purchase is $185. While you are short the stock, Charlotte pays a $2.00 per share dividend. At the end of one year, you buy 100 shares of Charlotte at $38 to close out your position and are charged a commission of $175 and 11 percent interest on the money borrowed. What is your rate of return on the investment? Do not round intermediate calculations. Round your answer to two decimal places.

_______ %

You own 100 shares of Shamrock Enterprises that you bought at $23 a share. The stock is now selling for $42 a share. You put in a stop loss order at $37. If the stock eventually declines in price to $27 a share, what would be your rate of return with and without the stop loss order? Round your answers to two decimal places.

Rate of return with the stop loss: ____ %

Rate of return without the stop loss: ____%

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