Assume That Michaela Purchases $12,000 Worth of a Stock

question 63

Multiple Choice

Assume that Michaela purchases $12,000 worth of a stock.To do so she uses $2,000 of her own money and borrows the remaining $10,000 at an 8.0 percent interest rate.If the stock's value increases by 20 percent in one year and she sells the stock at that time, what is her rate of return?

• A)13 percent
• B)16 percent
• C)20 percent
• D)80 percent

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Definitions:

Standardization

The process of developing and implementing technical standards to ensure consistency, safety, and interoperability of products and services.

George Ritzer

George Ritzer is a prominent American sociologist known for his contributions to consumer culture theory, globalization, and his concept of McDonaldization.

McDonaldization

The process by which the principles of the fast-food industry, such as efficiency and standardization, have come to dominate other sectors of society.

Calculability

A principle, often related to rationalization and modernity, emphasizing quantification and measurement in decision-making processes.