Avout the shorting and margin

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Reference no: EM131059373

Suppose that to short a stock you are required to deposit an amount equal to initial price of the stock. At the end of year 1, 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?

Reference no: EM131059373

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