Question
You sold short 500 shares of XYZ stock currently priced at $100. Your initial margin requirement was 50%. If interest rate is 0% and the
You sold short 500 shares of XYZ stock currently priced at $100. Your initial margin requirement was 50%. If interest rate is 0% and the stock is selling at $115, compute the ROE on your margined position. Ignore transactions costs.
+20%
-30% <------ This is the correct answer, what is the work?
-20%
+30%
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The Analysis And Use Of Financial Statements
Authors: Gerald I. White, Ashwinpaul C. Sondhi, Haim D. Fried
2nd Edition
0471111864, 978-0471111863
