Upside potential and downside risk of investment position

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1. In January 2007, the average price of an asset was $28,158. 8 years earlier, the average price was $21,108. What was the annual increase in selling price?

2. One of the owners borrowed 150M from the business on 9/30/08. Terms are five years, with interest only to be paid in years one and two. The green interest rate is 10%

3. How do margin trades magnify both the upside potential and the downside risk of an investment position? Explain with examples.

Reference no: EM132003386

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