Suppose that to short a stock you are required to deposit an amount equal to the initial
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Suppose that to short a stock you are required to deposit an amount equal to the initial price $X_{0}$ of the stock. At the end of 1 year the stock price is $X_{1}$ and you liquidate your position. You receive your profit from shorting equal to $X_{0}-X_{1}$ and you recover your original deposit. If $R$ is the total return of the stock, what is the total return on your short?
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Muhammad Salman Alvi
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