Compute the rate of return on position

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Reference no: EM131605915

You decide to selll short 100 shares stock when the price is $80 per share. the margin requirement is 55% one year later you close out tour short position by repurchasing the stock at $66 commissions are 2.2% of the trade value. while short stock it pays a dividend of $2.50 per share. the broker charges an interest rate of 8.5%

Compute the rate of return on this position

Reference no: EM131605915

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