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

Find out:

A 10%

B 20%

C 6.67%

D 15%

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