Question
You purchased 200 shares of General Electric (GE) at $25 per share one year ago. To pay the purchase, you borrowed $2,000 from your broker.
You purchased 200 shares of General Electric (GE) at $25 per share one year ago. To pay the purchase, you borrowed $2,000 from your broker. If now you sell all 200 shares at $24, what is the rate of return (percentage) on your account? Assume the interest rate on the loan over the borrowing period is 5%.
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The Concepts And Practice Of Mathematical Finance
Authors: Mark S. Joshi
2nd Edition
0521514088, 9780521514088
