Question
An investor puts up $5,000 and borrows an equal amount of money from his broker to double the amount invested to $10,000. The broker charges
An investor puts up $5,000 and borrows an equal amount of money from his broker to double the amount invested to $10,000. The broker charges 8% on the loan. The stock was originally purchased at $100 per share, and in 1 year the investor sells the stock for $95. The investor's rate of return was ____.
| 45% | ||
| -18% | ||
| 25% | ||
| -12% |
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Investments An Introduction
Authors: Herbert B. Mayo
13th Edition
0357127951, 978-0357127957
