Suppose an investor holds $80,000 in Facebook stock. She also borrows $20,000 for 1 year at a rate of 4.00% with the principal due at maturity. If Facebook stock returns 6.00% during the one-year life of the loan, what is the investor's return on equity in her overall portfolio rounded to the nearest basis point?

Answer rating: 100% (QA)

Return on equity Net Profit Ass ets x 100 Net Profit G ain from Facebook ... View the full answer