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You have $5000 of your own to invest; and borrow an additional $5000 from your broker at an interest rate of 6% per year for
You have $5000 of your own to invest; and borrow an additional $5000 from your broker at an interest rate of 6% per year for one year. You invest the summed amount in Stock A at $50 per share. Assume the stock pays no dividends. Taking into consideration of the borrowing cost, what will be your rate of return if the stock price goes up by 10% during the next year? O 10% O 20% 14% O 5%
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