Samantha and Jamaal both invest in a stock whose price goes from $100 to $60 after one year and $40 the next. Samantha borrowed 20% of the money to invest while Jamaal borrowed none. Find their effective rates of return on the initial price ignoring the cost of borrowing.

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The Answer of Samantha and Jamaal both invest in a stock whose price goes from $100 to $60 after one year and $40 the next. Samantha borrowed 20% of the money to invest while Jamaal borrowed none. Find their effective rates of return on the initial price ignoring the cost of borrowing.

Samantha and Jamaal Both Invest in a Stock Whose Price