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I Buy 100 Shares of Stock at $2 a Share

Question 44

Multiple Choice

I buy 100 shares of stock at $2 a share, with $100 of my own money. I borrow another $100 at 10 percent interest. The share price stays constant at $2. My rate of return is approximately:


A) 2 percent.
B) 0 percent.
C) −5 percent.
D) −10 percent.

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