Question
An investor wishes to construct a portfolio by borrowing 15% of his original wealth at the risk-free rate and investing in a stock index. The
An investor wishes to construct a portfolio by borrowing 15% of his original wealth at the risk-free rate and investing in a stock index. The return on the risk-free asset is 3% and the expected return on the stock index is 20%. Calculate the expected return on the portfolio.
| .1745 | ||
| .1955 | ||
| .2255 | ||
| .2345 |
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The Risk Modeling Evaluation Handbook Rethinking Financial Risk Management Methodologies In The Global Capital Markets
Authors: Greg Gregoriou, Christian Hoppe, Carsten Wehn
1st Edition
0071663703, 978-0071663700
