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You sold a stock short for $50 and maintained the position for two years during which the stock paid an annual dividend of $2. At
You sold a stock short for $50 and maintained the position for two years during which the stock paid an annual dividend of $2. At the end of two years, you closed your position when the stock was selling for $35. The margin requirement for short sales was 100 percent, so you could not borrow any funds. Excluding the impact of commissions, what was the annual rate of return on this investment?
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