QUESTION $16$

Old Economy Traders opened an account to short$-$sell $1,500$ shares of Internet Dreams at $$50$ per share. The initial margin requirement was $50\%.$ The

margin account pays no interest. A year later, the price of Internet Dreams has risen from $$50$ to $$60.$ What is the rate of return over the year on the

investment?

$-20\%$

$-40\%$

$20\%$

$-13\mathrm{.}33\%$