Acort Industries owns assets that will have an 80% probability of having a market value of $50 million in one year. There is a 20% chance that the assets will be worth only $20 million. The current risk-free rate is 5%, and Acorts assets have a cost of capital of 10%.

-What is the lowest possible realized return of Acorts equity with leverage?

-What is the lowest possible realized return of Acorts equity without leverage?