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You sell short 100 shares of Microsoft that are currently selling at $100 per share. You post the 50% margin (cash buffer) required on the
You sell short 100 shares of Microsoft that are currently selling at $100 per share. You post the 50% margin (cash buffer) required on the short sale. If the broker charges you interest of 6%, what will be your rate of return after 1 year if Microsoft is selling at $97? (Ignore any dividends.) -6% 6% 3% 10%
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