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You open a brokerage account and purchases 100 shares of a stock at a price of $20 per share. You borrow $800 from your broker to help pay for the purchase. Assume no transaction costs. After a year, the price has increased to $25 per share. What is your rate of return? Assume an interest rate of 10%. 25.00% O-31.26% O 41.67% 35.00% O-19.00%

You open a brokerage account and purchases 100 shares of a stock at a price of $20 per share. You borrow $800 from your broker to help pay for the purchase. Assume no transaction costs. After a year, the price has increased to $25 per share. What is your rate of return? Assume an interest rate of 10%. 25.00% O-31.26% O 41.67% 35.00% O-19.00%

Advanced Engineering Mathematics
Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
Section: Chapter Questions
Problem 1RQ
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You open a brokerage account and purchases 100 shares of a stock at a price of $20 per share. You borrow $800 from your broker to help pay for the purchase. Assume no transaction costs. After a year, the price has increased to $25 per share. What is your rate of return? Assume an interest rate of 10%. O 25.00% -31.26% 41.67% O 35.00% O-19.00 %
Transcribed Image Text:You open a brokerage account and purchases 100 shares of a stock at a price of $20 per share. You borrow $800 from your broker to help pay for the purchase. Assume no transaction costs. After a year, the price has increased to $25 per share. What is your rate of return? Assume an interest rate of 10%. O 25.00% -31.26% 41.67% O 35.00% O-19.00 %
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