Shorted 150 shares of Grimsby Corp (GC) at $34 per share exactly 2 years ago. GC paid a dividend of $0.75 one year ago and $1.25 one day ago. The price today of GC is $26.

Compute the two-year holding period return on this investment.

Describe two risks associated with an investment of this kind.

 Purchased 200 shares of Captain Fantastic Industries (CFI) at $55 per share but borrowed $4,000 of the funds at 3.9%. Assume the price of CFI rises to $67 per share at the end of the first year.

Compute the return on this investment.

Describe two risks associated with an investment of this kind.

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Answer rating: 100% (QA)

Lets calculate the twoyear holding period return for the short position in Grimsby Corp GC Initial short position 150 shares 34 per share 5100 Dividen... View the full answer