You have an initial wealth of £500. You borrow £300 at 4% annual interest, and invest the total of £800 in stock XYZ. If
-
answerhappygod
- Site Admin
- Posts: 899604
- Joined: Mon Aug 02, 2021 8:13 am
You have an initial wealth of £500. You borrow £300 at 4% annual interest, and invest the total of £800 in stock XYZ. If
You have an initial wealth of £500. You borrow £300 at 4% annual interest, and invest the total of £800 in stock XYZ. If XYZ' stock earns a net simple return of -27% next year, what is your net simple portfolio return (after paying off the debt)? (NB: Give your answer in decimal form rounded to 3 decimal places, e.g. enter "0.123" if the portfolio return is 12.3%.)
Join a community of subject matter experts. Register for FREE to view solutions, replies, and use search function. Request answer by replying!