Assume Joe Invests a Total of $10,000 in a Company

question 119

Multiple Choice

Assume Joe invests a total of $10,000 in a company - $5,000 of which is his own money and $5,000 which he borrowed at a 10% interest rate.If the company's stock value decreases by 5% 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% 
• B)−10% 
• C)−20% 
• D)−30%

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Definitions:

Hysteria

A psychological disorder historically ascribed to women, characterized by exaggerated or uncontrollable emotion or excitement.

Neurosis

A broad category of psychological disorders characterized by anxiety, depression, or other feelings of distress that affect day-to-day functioning.

Eating Disorders

Mental health disorders characterized by abnormal or disturbed eating habits, which can severely impact a person’s health and well-being.

Depression

A common mental health disorder involving persistent sadness, loss of interest, and a lack of energy, affecting an individual’s feelings, thoughts, and behaviors.