An investor sells a stock short for 50 a share a year later


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 60 percent, what is the percentage return earned on the investment? Round your answer to one decimal places.

Redo the calculations, assuming the price of the stock is $56 when the investor closes the position. Round your answer to one decimal places.

please show work

Request for Solution File

Ask an Expert for Answer!!
Financial Management: An investor sells a stock short for 50 a share a year later
Reference No:- TGS01357108

Expected delivery within 24 Hours