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Question 12 (1 point) You are bullish on Bluestar Airlines stock. The current market price is $20 per share, and you have $2,000 of your
Question 12 (1 point) You are bullish on Bluestar Airlines stock. The current market price is $20 per share, and you have $2,000 of your own to invest. You borrow an additional $2,000 from your broker at an interest rate of 7.5% per year and invest $4,000 in the stock. What will your rate of return be if the price of Bluestar Airlines stock goes up by 9% during the next year? (Ignore the expected dividend.) / a) 7.5% b) 9% c) 10.5% d) 1.5%
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