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You sell short 200 shares of Microsoft that are currently selling at $50 per share. You post the 40% margin required on the short sale.

You sell short 200 shares of Microsoft that are currently selling at $50 per share. You post the 40% margin required on the short sale. If you earn no interest on the funds in your margin account, what will be your rate of return after 1 year if Microsoft is selling at $48? (Ignore any dividends.)

7.50%

17.50%

5.00%

10.00%

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