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Henry wants to invest $500,000. The borrowing rate are equal to 8%. The risk free rate is also 8%. The risky portfolio return has a
Henry wants to invest $500,000. The borrowing rate are equal to 8%. The risk free rate is also 8%. The risky portfolio return has a return of 16%. What should Henry do if he wants to earn a 22% return? borrow $125,000 invest $125,000 in the risk-free asset borrow $375,000 O invest $375,000 in the risk-free asset
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