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Suppose you sell short 4,000 shares of Alcoa (Symbol: AA) at $12 per share and give...

Suppose you sell short 4,000 shares of Alcoa (Symbol: AA) at $12 per share and give your broker $25,000 to establish your margin account. If you earn 0.2% interest on the funds you deposited to establish your margin account and the short sale proceeds, what will be your rate of return after one year (t=1) if AA stock is selling at $15? AA does not pay a dividend. A. -45% B. -47% C. -49% D. 50%

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