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A highly leveraged investment firm puts up $20 million of its own capital and borrows an additional $180 million to make a total investment of $200 million in a portfolio of assets. If the value of this asset portfolio subsequently falls by 10%, what is the percentage return on the firm's own capital?
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A highly leveraged investment firm puts up $20 million of its own capital and borrows an additional $180 million to make a total investment of $200 million in a portfolio of assets. If the value of this asset portfolio subsequently falls by 10%, what is the percentage return on the firm's own capital?
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