You sold a stock short for $50 and maintained the position for two years during which the

Question:

You sold a stock short for $50 and maintained the position for two years during which the stock paid an annual 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?
Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...