Question
An investor puts up $10,000 but borrows an equal amount of money from his broker to double the amount invested to $20,000. The broker charges
An investor puts up $10,000 but borrows an equal amount of money from his broker to double the amount invested to $20,000. The broker charges 4% on the loan. The stock was originally purchased at $25 per share, and in 1 year the investor sells the stock for $27. The investor's rate of return was ____.
Multiple Choice
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4.00%
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6.00%
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12.00%
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10.00%
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The Foundations Of Business Analysis
Authors: M Douglas Berg
1st Edition
1465222030, 9781465222039
