Lisa Would Like to Purchase a Stock Priced at $70

question 12

Multiple Choice

Lisa would like to purchase a stock priced at $70. The stock is not expected to pay any dividends in the coming year. She can either put up the entire amount and purchase the stock, or borrow $35 from her brokerage firm at an annual interest rate of 12 percent and put up the remainder. She thinks she can sell the stock for $100 after one year. If she borrows from her brokerage firm, her estimated return on the stock would be ____ percent.

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

---

Definitions:

Psychological Factors

Elements of a person's psychological make-up, such as emotions, attitudes, and mental health, that can affect physical well-being and behavior.

Biological

Pertaining to the science of life or living organisms, often used in reference to genetic or hereditary aspects of physical and mental health.

Sociocultural Factors

Aspects of society and culture that influence individual behaviors, attitudes, and mental health, including norms, values, and social practices.

Deviant Behavior

Actions or behaviors that violate societal norms or expectations, which can lead to social disapproval or sanctions.