Question
You invest $6,000 in ABC stock. You also borrowed an additional $8,000 to increase your investment in ABC. The interest rate on the loan is
You invest $6,000 in ABC stock. You also borrowed an additional $8,000 to increase your investment in ABC. The interest rate on the loan is 10%. You purchased the stock at $20 per share and hold it for one year. At the end of the year, you sold the stock at $30 per share. What is your rate of return on this investment?
(2 Points)
17.7%
14.4%
25.76%
36.6%
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Economics For Investment Decision Makers
Authors: Sandeep Singh, Christopher D Piros, Jerald E Pinto
1st Edition
1118111966, 9781118111963
