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Suppose you are bearish on a stock, and its market price is $250 per share....

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Finance

Suppose you are bearish on a stock, and its market price is $250 per share. You tell your broker to sell short 1,000 shares. The broker borrows 1,000 shares either from another customer's account or from another broker. Suppose also that the broker has a 50% margin requirement on short sales. Suppose that the price of the stock increases to $275 per share when you close your short position. How many percent is your rate of return before fees?

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