You Purchase a Stock with Cash, and You Earn a Negative

question 58

Multiple Choice

You purchase a stock with cash, and you earn a negative return on the stock. If you had purchased the stock with 60 percent cash and 40 percent borrowed funds, your return on your investment would have been

• A)positive.
• B)more negative than if you had covered the entire investment with cash.
• C)negative, but more favorable than if you had covered the entire investment with cash.
• D)zero.

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