You Sell Short 300 Shares of Microsoft That Are Currently

question 8

Multiple Choice

You sell short 300 shares of Microsoft that are currently selling at $30 per share. You post the 50% margin required on the short sale. If you earn no interest on the funds in your margin account, what will be your rate of return after 1 year if Microsoft is selling at $27? (Ignore any dividends.)

• A) 10%
• B) 20%
• C) 6.67%
• D) 15%

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Definitions:

Personal Selling

Personal selling involves direct contact between a salesperson and a potential customer for the purpose of selling a product or service.

Public Relations Department

A division within a company or organization tasked with managing its public image and communications with stakeholders, media, and the public.

Image Management

The practice of overseeing and maintaining a person's or organization's reputation and public perception through various strategies and communications.

Absolute Costs

The total costs associated with the production or provision of goods or services, without consideration of relative efficiency.