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You sell short 400 shares of Microsoft that are currently selling at $60 per share. You post the 40% margin required on the short sale.
You sell short 400 shares of Microsoft that are currently selling at $60 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 Microsoft is selling at $547 (Ignore any dividends.) Multiple Choice 18.75% 43.75% 12.50% 25.00%
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