Multiple Choice
Assume Joe invests a total of $10,000 in a company-$5,000 of which is his own money and $5,000 of which he borrowed at a 10 percent interest rate.If the company's stock value decreases by 5 percent in one year at which time Joe sells his shares of the stock, what is Joe's rate of return on his investment?
A) −5 percent
B) −10 percent
C) −20 percent
D) −30 percent
Correct Answer:
Verified
Correct Answer:
Verified
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