Question

Just like in the previous question, I get the tip about Canada Goose swimwear, take my own $3,000, borrow $7,000 more, and invest the whole $10,000 in Canada Goose stock. However, it turns out that down-lined bathing suits, when wet, sag like a very full baby diaper, and smell worse. Canada Goose stock plunges in value by 50%. How much money do I lose?

Answer 1

You will be losing $5,000 because of the stock decreasing, and the remaining $5,000 will be consumed since you owed someone $7,000 for borrowing, so now you're $2,000 in debt.

Hope this answer helped!