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Business, 18.12.2019 03:31 wolfsaway

Suppose balin has $100 to invest in an opportunity that returns, for every $100 invested, $120 if it goes well but only $80 if it goes poorly. if leverage allows balin to borrow $90 for every $10 he invests, what are his rates of profit and loss, respectively, if he borrows the full amount to invest in the opportunity?

a. 33.3 percent profit; 50 percent loss
b. 20 percent profit; 20 percent loss
c. 1,100 percent profit; 100 percent loss
d. 200 percent profit; 100 percent loss

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Suppose balin has $100 to invest in an opportunity that returns, for every $100 invested, $120 if it...
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