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    Exam 13: Financial Crises: Causes and Consequences
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    An Investor Borrows Half the Funds to Invest in an Asset
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An Investor Borrows Half the Funds to Invest in an Asset

Question 51

Question 51

Short Answer

An investor borrows half the funds to invest in an asset whose price falls from $200 to $150. Ignoring the cost of borrowing, what is the effective rate of return?

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