In March of this year, Ermine felt the market had nowhere to go but down. Accordingly, she sold short $15,000 of IGM stock. Her broker requires a 60% margin on short sales. Ermine covered her short position when the value of her shorted IGM shares fell to $13,000. During the time Ermine’s short position was open, IGM paid a dividend of $500. What percentage return did Ermine earn on her initial investment
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In March of this year, Ermine felt the market had nowhere to go but down. Accordingly, she sold short $15,000 of IGM stock. Her broker requires a 60% margin on short sales. Ermine covered her short position when the value of her shorted IGM shares fell to $13,000. During the time Ermine’s short position was open, IGM paid a dividend of $500. What percentage return did Ermine earn on her initial investment?
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