Assume that an investor decides to build a leveraged portfolio and invests 65,000 of her own money
Fantastic news! We've Found the answer you've been seeking!
Question:
Assume that an investor decides to build a leveraged portfolio and invests 65,000 of her own money and 35,000 of borrowed money in the index fund. The risk-free rate is 7%, but the investor needs to pay 10% on the borrowed money. The expected rate of return on the index fund is 15%, and that thestandard deviation is 17%. Calculate the investor's expected risk and return.
Posted Date: