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:

Ethical

Pertaining to or dealing with morals, the principles of morality concerning right and wrong behavior.

Successful Companies

Businesses that achieve their goals and objectives, often reflected in profitability, market share, or innovation.

Freud Model

A psychological model proposed by Sigmund Freud that outlines three primary components of the human psyche: the id, ego, and superego, functioning together to shape personality and behavior.

Superego

In Freudian psychoanalysis, the part of the personality that acts as a moral center, imposing the morals and standards learned from parents and society.