You deposit $100,000 cash in a brokerage account and short sell $200,000 of stocks. Later, the value

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You deposit $100,000 cash in a brokerage account and short sell $200,000 of stocks. Later, the value of the stocks held short rises to $250,000, whereupon you get nervous and close your account. What is the percentage return on your investment (ignore interest paid)?

a. 0 percent

b. −25 percent

c. −50 percent

d. −75 percent.

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Fundamentals Of Investments Valuation And Management

ISBN: 9781266824012

10th Edition

Authors: Bradford Jordan, Thomas Miller, Steve Dolvin

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