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You just sold short 700 shares of P&G at $100. You cover your short position when the price hits $80 per share one year later.

You just sold short 700 shares of P&G at $100. You cover your short position when the price hits $80 per share one year later. If the company paid $2.00 per share in dividends over this period, what is your rate of return on the investment? Assume an initial margin of 60 percent.

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