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8) - Suppose you have $10,000 in cash, where you request (in addition) a loan of $10,000, with a 5% interest rate, to invest in
8) - Suppose you have $10,000 in cash, where you request (in addition) a loan of $10,000, with a 5% interest rate, to invest in the stock market; then, the $ 20,000 is invested in a Q portfolio, whose expected return is 10% and, additionally, the volatility is 20%. What is the expected return and volatility of the investment? ... What is the return obtained if Q exceeds 30% during the year?... What return is obtained if Q falls to 10% in the course of the year? ... *Note: detail the procedure (by hand), both for the formulas and for the resolution
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