Business, 26.02.2020 03:20, ashhleyjohnson

Suppose that you sell short 400 shares of Xtel, currently selling for $40 per share, and give your broker $8,000 to establish your margin account. a. If you earn no interest on the funds in your margin account, what will be your rate of return after one year if Xtel stock is selling at: (i) $43; (ii) $40; (iii) $37? Assume that Xtel pays no dividends. (Leave no cells

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Suppose that you sell short 400 shares of Xtel, currently selling for $40 per share, and give your b...