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Apples stock is currently trading at $120 per share. Suppose that you believe the stock is undervalued. You have $10,000 to invest but borrowed an
Apples stock is currently trading at $120 per share. Suppose that you believe the stock is undervalued. You have $10,000 to invest but borrowed an additional $2000 to purchase a total of 100 shares of Apples stock. The interest rate on the loan is 10% per year. One year later, Apple share price drops to $105. You sell the 100 shares and pay back your debt plus interest. What would be your rate of return from this investment? Please Show Work
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