UPENN LOOSE-LEAF INVESTMENTS
11th Edition
ISBN: 9781260392258
Author: Bodie
Publisher: MCG
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Chapter 1, Problem 16PS
Summary Introduction
To Determine: The decision to buy a book or not which is shown in an advertisement to help earn money of amount $1 million without investments.
Introduction: The investor could become rich by $1 million by using a book without risk and without money down.
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2. Suppose you bought a condo for $200,000 financing it with a $40,000 down payment of your own funds and a $160,000 mortgage loan from a bank.
D.you only put down $20,000 and borrowed $230,000 to buy the $250,000 house. Assuming that the market value of your house has fallen to $210,000 and ignoring interest and other costs, calculate your rate of return on your asset (ROA) and your rate of return on equity (ROE).
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UPENN LOOSE-LEAF INVESTMENTS
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