USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)

question 63

Multiple Choice

USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)
You decide to sell short 200 shares of XCorp stock at a price of $75. Your margin deposit is 65 percent. Commission on the sale is 1.25 percent. While you are short, the stock pays a $1.75 per share dividend. Interest on margin debt is 5.25 percent per year.
-Refer to Exhibit 3.6. At the end of one year you close out your short position by purchasing share of XCorp at $45 per share. The commission is 1.25 percent. What is your rate of return on the investment?

• A) -55.92 percent
• B) 10.31 percent
• C) 51.06 percent
• D) 23.1 percent
• E) -33.05 percent

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Definitions:

Amino Acid

Organic compounds that serve as the building blocks of proteins, which are crucial for most biological processes.

Grouping

Grouping refers to the organization or arrangement of individuals, objects, or ideas into categories or clusters based on shared characteristics or themes.

N-formyl-methionine

A modified amino acid that serves as the starting amino acid in protein synthesis in prokaryotic cells.

Amino Terminal

The end of a protein or polypeptide chain where the amino group is not involved in a peptide bond; often symbolized as the 'N-terminus'.