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

question 85

Multiple Choice

Assume Joe invests a total of $10,000 in a company - $5,000 of which is his own money and $5,000 which he borrowed at a 10% interest rate.If the company's stock value decreases by 5% 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%
• B)-10%
• C)-20%
• D)-30%

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