Maximum rate of return to borrow for high yield investment

Reference no: EM13116766

You have two investment opportunities. One will have a 10% rate of return on an investment of $500; the other will have an 11% rate of return on a principal of $700. You would like to take an advantage of the higher yield investment but have only $500 available. What is the maximum rate of return that you would pay to borrow the $200 need to take advantage of the high yield investment?

Reference no: EM13116766

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