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Donald puts up $16,000 but borrows an equal amount of money from his broker to double the amount invested to $32,000. The broker charges 7%
Donald puts up $16,000 but borrows an equal amount of money from his broker to double the amount invested to $32,000. The broker charges 7% on the loan. The stock was originally purchased at $50 per share, and in 1 year the investor sells the stock for $55. The investor's rate of return was Multiple Choice 3.00% 13.50% 13.00% 6.50%
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