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Suppose you have $50,000 in cash in your brokerage account. Youthen short sell 20 shares of GOOG, currently priced at $1500 pershare. What is the

Suppose you have $50,000 in cash in your brokerage account. Youthen short sell 20 shares of GOOG, currently priced at $1500 pershare. What is the dollar gain or loss on your portfolio, over thenext year if GOOG falls to $1250 per share?

What would have been the loss/gain on your portfolio had youbought (using margin) 50 shares of GOOG instead?

(For both parts of the question, assume that the interest ratefor borrowing and lending is 1% per year.)

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