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Stock A price increases from $10 to $11 and pays a dividend of $1 => return of $2 on $10 Stock B price increases from

Stock A price increases from $10 to $11 and pays a dividend of $1 => return of $2 on $10

Stock B price increases from $10 to $10.25 and pays a dividend of $0.25 => return of $0.50 on $10

Interest rate on short proceeds and margin account: 0.5%/month

Borrowing fee: 1% annually; Holding period=1 month

What is the return of the long/short fund?

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