Solution-Find annual rate of return on investment

Find annual rate of return on investment

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You sold a stock short for $50 and maintained the position for two years during which the stock paid an annual dividend of $2. At the end of two years, you closed your posi-tion when the stock was selling for $35. The margin requirement for short sales was 100 percent, so you could not borrow any funds. Excluding the impact of commis-sions, what was the annual rate of return on this investment?

Reference no: EM133121259

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Find annual rate of return on investment

Reference no: EM133121259

Reference no: EM133121259

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