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you decide to sell 300 shares of elk company short when it is selling at its yearly high of $75.50. Your broker tells you that
you decide to sell 300 shares of elk company short when it is selling at its yearly high of $75.50. Your broker tells you that your margin requirement is 65%. While you are short, Elk pays a $1.75 per share dividend. At the end of the year you buy your shares at $68.75 and pay a 12% interest rate in the amount borrowed. What is your rate of return on the investment?
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