8. Hick Cady argues that buying a risky portfolio with riskfree borrowing is equivalent to a purchase

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8. Hick Cady argues that buying a risky portfolio with riskfree borrowing is equivalent to a purchase of the risky portfolio on margin. Patsy Cahill contends that such an investment can be viewed as selling the riskfree asset short and using proceeds to invest in the risky portfolio. Who is correct? Explain.

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Investments

ISBN: 9788120321014

6th Edition

Authors: William F. Sharpe, Gordon J. Alexander, Jeffery V. Bailey

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