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Suppose that to short a stock you are required to deposit an amount equal to the initial price X0 of the stock. At the end
Suppose that to short a stock you are required to deposit an amount equal to the initial price X0 of the stock. At the end of 1 year the stock price is X1 and you liquidate your position. You receive your profit from shorting equal to X0 X1 and you recover your original deposit. What are the total return and rate of return on your short?
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