Subject: Re: Speculating
So, here's a "risk free" way to make a one-time 12% return.
Sell short 2323 shares of RSP, the ETF that tracks the S&P 500 Equal Weight index. Current price $203.67.
Use the proceeds to buy 1000 shares of BRK/B at $473.22.
What is the interest rate charged to borrow those shares of RSP (shorting isn't free? Wouldn't that rate have to be subtracted from the 12%? And if there is any dividend distributed in the interim, that would have to be added to the 12%