Mark Purchases a Stock Priced at $70

question 64

Multiple Choice

Mark purchases a stock priced at $70. The stock is not expected to pay any dividends in the coming year. Mark thinks he can sell the stock for $100 after one year. If Mark uses his own funds for half of the investment amount and borrows the remainder from his brokerage firm at an annual interest rate of 12 percent, his estimated return on the stock would be ____ percent.

• A)42.86
• B)85.71
• C)73.71
• D)30.00

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Definitions:

Hip Flexion

The movement of bringing the thigh or knee up towards the abdomen by flexing the hip joint.

Psoas Major

A large muscle that runs from the lumbar region of the vertebral column to the femur, important for flexing the hip joint.

Iliacus

A muscle of the pelvic region that acts with the psoas major to flex the thigh at the hip joint.

Biceps Femoris

A muscle of the thigh that forms part of the hamstrings, involved in knee flexion and hip extension.