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Consider a borrow-and-invest strategy in which you use $100 of your own money and borrow another 25% to invest in the market index fund. If
Consider a borrow-and-invest strategy in which you use $100 of your own money and borrow another 25% to invest in the market index fund. If the risk-free interest rate is 5.7% and the expected return on the market index fund is 17.7%, what is the expected rate of return on the borrow-and-invest strategy
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