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FINANCIL MODELING Question 1 3 Thabo's initial wealth is R100 000. Suppose he borrows R50000 at 6% interest rate and invest the entire R150000 in

FINANCIL MODELING

Question 1 3 Thabo's initial wealth is R100 000. Suppose he borrows R50000 at 6% interest rate and invest the entire R150000 in a risky asset with an expected return of 15%. Determine the expected rate of return for his portfolio

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