At the beginning of the year, an investor holds EUR10,000 in a hedge fund. The investor borrowed

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At the beginning of the year, an investor holds EUR10,000 in a hedge fund. The investor borrowed 25 percent of the purchase price, EUR2,500, at an annual interest rate of 6 percent and expects to pay a 30 percent tax on the return she earns from his investment. At the end of the year, the hedge fund reported the information in Exhibit 22:

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The investor’s after-tax return on the hedge fund investment is closest to:
A. 3.60 percent.

B. 3.98 percent.

C. 5.00 percent.

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