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socalcheer951
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.
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.