Question: You borrowed $ 6 0 4 3 , 9 months ago at an effective rate of 0 . 7 % per month to purchase $

You borrowed $6043,9 months ago at an effective rate of 0.7% per month to
purchase $30648 of stock. Over that entire time, the stock has risen by 8.8%. What
would be your EAR on ROE for this trade?
[Give your answer in percent so 5 will be interpreted as meaning 5% and -0.7 will be
interpreted as meaning -0.7%]
Answer:
You borrowed $6043,9 months ago at an effective rate of 0.7%

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