Suppose you have $10,000 in cash to invest.You decide to sell short $5,000 worth of Kinston stock and invest the proceeds from your short sale, plus your $10,000 into one-year U.S. treasury bills earning 5%.At the end of the year, you decide to liquidate your portfolio.

Kinston Industries has the following realized returns:

P_0. Div_1. P₁

Kinston. $25.00. $1.00. $29.00

The return on your portfolio is closest to:

14.5%

13.5%

-0.5%

-2.5%