Here's the question you clicked on:

55 members online
  • 0 replying
  • 0 viewing


  • 4 years ago

An investor sells a stock short for $50 a share. A year later, the investor covers the position at $44 a share. If the margin requirement is 40 percent, what is the percentage return earned on the investment? Round your answer to one decimal places.

  • This Question is Closed
  1. Cryptic57
    • 4 years ago
    Best Response
    You've already chosen the best response.
    Medals 1

    Do we assume no interest or brokerage charges and no loss of interest earned on the 40% margin payment? 13.6% is the return for $6 on $44 investment.

  2. Not the answer you are looking for?
    Search for more explanations.

    • Attachments:

Ask your own question

Sign Up
Find more explanations on OpenStudy
Privacy Policy