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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

  • 4.00%

  • 6.00%

  • 12.00%

  • 10.00%

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