Suppose you believe that ABC stock is going to fall, so you short sell 500 shares at a price of $50. You cover your short when the price hits $47.50 per share one year later. What is your rate of return on investment? Assume an initial margin of 60 percent.

Group of answer choices

8.57 percent

7.93 percent

9.12 percent

8.33 percent

5.00 percent