Assume you have income of $5,000 in each of two periods and can lend at 10% but

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Assume you have income of $5,000 in each of two periods and can lend at 10% but pay 20% on borrowing. What is your opportunity set?

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Modern Portfolio Theory and Investment Analysis

ISBN: 978-1118469941

9th edition

Authors: Edwin Elton, Martin Gruber, Stephen Brown, William Goetzmann

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Question Posted: Jun 10, 2015 03:33 AM

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Assume you have income of $5,000 in each of two periods and can lend at 10% but

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With an interest rate of 10 and income at both time 1 and time 2 of 5000 the oppo...View the full answer

Modern Portfolio Theory and Investment Analysis

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