You decide to sell short 100 shares of Charlotte Horse Farms when it is selling at its yearly high of $56. Your broker........

You decide to sell short 100 shares of Charlotte Horse Farms when it is selling at its yearly

high of $56. Your broker tells you that your margin requirement is 45 percent and that the

commission on the purchase is $155. While you are short the stock, Charlotte pays a $2.50

per share dividend. At the end of one year, you buy 100 shares of Charlotte at $45 to close

out your position and are charged a commission of $145 and 8 percent interest on the

money borrowed. What is your rate of return on the investment?

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You decide to sell short 100 shares of Charlotte Horse Farms when it is selling at its yearly

high of $56. Your broker tells you that your margin requirement is 45 percent and that the

commission on the purchase is $155. While you are short the stock, Charlotte pays a $2.50

per share dividend. At the end of one year, you buy 100 shares of Charlotte at $45 to close

out your position and are charged a commission of $145 and 8 percent interest on the

money borrowed. What is your rate of return on the investment?

We are available 24x7 to deliver the best services and assignment ready within 3-4 hours? Order a custom-written, plagiarism-free paper