Assume you sell short 100 shares of common stock at 45 per


Assume you sell short 100 shares of common stock at $45 per share, with initial margin at 50%. What would be your rate of return if you repurchase the stock at $40/share? The stock paid no dividends during the period, and you did not remove any money from the account before making the offsetting transaction.

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Financial Management: Assume you sell short 100 shares of common stock at 45 per
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