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Your mother just invested 1 million ISK in a bank that is being privatized. She has some good connections so she invests 250K of her
Your mother just invested 1 million ISK in a bank that is being privatized. She has some good connections so she invests 250K of her own savings and gets an interest free loan of 750K from the bank to pay for the rest of the shares.
The day after the investment, the share price of the bank has risen, and her investment is now worth 1.25 million ISK. What is your mums return on investment?
Group of answer choices
a.50%
b.100%
c.20%
d.Minus 100% (meaning she lost all her money)
e.25%
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