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Given the following data: Equity Investment = $600,000 Borrowed Amount = $300.000 Risk free rate (Lending) = 5% Risk free rate (Borrowing) = 7% Expected

Given the following data:

Equity Investment = $600,000

Borrowed Amount = $300.000

Risk free rate (Lending) = 5%

Risk free rate (Borrowing) = 7%

Expected Return of Risky Assets = 16%

Standard Deviation of Risky Assets = 20%

Risk Aversion Score = 6

A) An investor would like to make a leveraged portfolio. Determine the following:

1. Expected Return of the complete portfolio

2. Standard Deviation of the complete portfolio

3. Sharpe Ratio

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