Assume Joe Invests a Total of $10,000 in a Company-$5,000

question 143

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

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Definitions:

Physical Activity

Any bodily movement produced by skeletal muscles that requires energy expenditure, including activities undertaken while working, playing, carrying out household chores, traveling, and engaging in recreational pursuits.

Appetites

Natural desires or cravings, especially for food or pleasure.

Rest Cure

A medical treatment used in the late 19th and early 20th centuries, prescribing complete rest, often for mental health issues, highly criticized for its use on women.

Silas Weir Mitchell

A 19th-century American physician known for his work on nerve injuries and the rest cure, especially relating to the treatment of women with "hysteria."