What is rate of return on the investment

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You decide to sell 100 shares of a stock short when it is selling at its yearly high of $22.25. Your broker tells you that your margin requirement is 55% and that the commission on the sale is $55. While you are short, the stock, Tuna Boat pays a $0.75 per share dividend. At the end of one year you buy shares of the stock to cover your short sale at $18.38 and are charged a commission of $45 and a 9% interest rate on the funds you borrowed.

What is your rate of return on the investment?

Reference no: EM132969222

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