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You decide to sell short $500,000 worth of YDF stock and invest the proceeds from your short sale into one-year U.S. treasury bills earning 3%.

You decide to sell short $500,000 worth of YDF stock and invest the proceeds from your short sale into one-year U.S. treasury bills earning 3%. At the end of the year, you decide to close the short position and sell the treasury bills. YDF has the following realized returns: What is the balance of your portfolio at the end of the year? $15,000 $0 $8,750 $8,750

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