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Problem $3-04$

You decide to sell short $300$ shares of Charlotte Horse Farms when it is selling at its yearly high of $$57.$ Your broker tells you that your margin requirement is $45$ percent and that there are no commissions. While you are short the stock, Charlotte pays a $$2\mathrm{.}85$ per share dividend. At the end of one year, you buy $300$ shares of Charlotte at $$42$ to close out your position. The interest rate is $11$ percent. What is your rate of return on the investment? Do not round intermedace calculations. Round your answer to two decimal places.

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Problem $3-04$

Question $32$ of $47$

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