You have $55,000 to invest. You choose to put $105,000 into the market by borrowing $50,000. a.
Question:
You have $55,000 to invest. You choose to put $105,000 into the market by borrowing $50,000.
a. If the risk-free interest rate is 3% and the market expected return is 11%, what is the expected return of your investment?
b. If the market volatility is 16%, what is the volatility of your investment?
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a Expected Return Calculation Given Initial investment A 55000 Borrowed amount B 50000 Total inv...View the full answer
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Related Book For
Corporate Finance The Core
ISBN: 9781292158334
4th Global Edition
Authors: Jonathan Berk, Peter DeMarzo
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