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You currently have $ 5 0 0 0 in cash in your account ( and nothing else ) . Now you short 2 0 shares
You currently have $ in cash in your account and nothing else
Now you short shares of firm F at $ per share.
Tomorrow the price of firm F goes up to $ per share.
What is the return of your portfolio?
This is just one day, so interest rates and borrow fees have no significant effect here, just assume they are zero
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