An Investor Puts Up $5,000 but Borrows an Equal Amount

question 70

Multiple Choice

An investor puts up $5,000 but borrows an equal amount of money from his broker to double the amount invested to $10,000. The broker charges 7% on the loan. The stock was originally purchased at $25 per share, and in 1 year the investor sells the stock for $28. The investor's rate of return was ________.

• A) 17%
• B) 12%
• C) 14%
• D) 19%

---

Definitions:

Decreasing Consciousness

A reduction in alertness or awareness, leading to symptoms ranging from drowsiness to unresponsiveness.

Coma

A state of deep unconsciousness that lasts for a prolonged period, from which a person cannot be awakened, typically caused by severe illness or brain injury.

Computed Tomography

A diagnostic imaging technique that uses computer-processed combinations of many X-ray measurements taken from different angles to produce cross-sectional images of specific areas of a scanned object.

Skull Fracture

A type of bone fracture specifically affecting the cranium (the bones that encase the brain).