Mathematics, 28.04.2021 16:10 ha328
A broker wants to sell a customer an investment costing $100 with an expected payoff in one year of $109.6. The customer indicates that a 9.6 percent return is not very attractive. The broker responds by suggesting the customer borrow $90 for one year at 7.6 percent interest to help pay for the investment. a. What is the customer’s expected return if she borrows the money?
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