If you short $3000 of stock, and your margin rate is 150% and if you were to repurchase the stock after it increases by 8%. What is your return? The answer is supposed to be -16% but I'm not sure how they got to that answer.
If you short $3000 of stock, and your margin rate is 150% and if you were to repurchase the stock after it increases by 8%. What is your return? The answer is supposed to be -16% but I'm not sure how they got to that answer.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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help please answer in text form with proper workings and explanation for each and every part and steps with concept and introduction no AI no copy paste remember answer must be in proper format with all working
Transcribed Image Text:If you short $3000 of stock, and your margin rate is
150% and if you were to repurchase the stock after
it increases by 8%. What is your return? The
answer is supposed to be -16% but I'm not sure how
they got to that answer.
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