1. You deposite 100,000 cash ina brokerage account and purchase 200,000 of stocks on margin by barrowing 100,000 from your broker. Later, the value of your stock holdings falls to 150,000, whereupon you get nervous and close your account. what is the percentage return on your investment?
2. What are two examples of bad corporate capital budgeting decisions. For example, what projects or products have companies invested millions of dollars in, only to lose money?