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Samantha and Jamaal Both Invest in a Stock Whose Price

Question 41

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Samantha and Jamaal both invest in a stock whose price goes from $40 to $50 after one year and $60 the next. Samantha borrowed 25% of the money to invest while Jamaal borrowed none. Find their effective rates of return on the initial price, ignoring the cost of borrowing.

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Jamaal's rate of return is 25%...

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