(Last Word) Suppose Balin has $100 to invest in an opportunity that returns, for every $100 invested, $120 if it goes well but only $80 if it goes poorly. If leverage allows Balin to borrow $90 for every $10 he invests, what are his rates of profit and
loss, respectively, if he borrows the full amount to invest in the opportunity?
A. 20 percent profit; 20 percent loss.
B. 33.3 percent profit; 50 percent loss.
C. 200 percent profit; 100 percent loss.
D. 1,100 percent profit; 100 percent loss.
C. 200 percent profit; 100 percent loss.
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