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In a portfolio consisting of the risk free asset (with retum = 0.05) and/or a risky asset (with expected return 0.15 and variance = 0.20),
In a portfolio consisting of the risk free asset (with retum = 0.05) and/or a risky asset (with expected return 0.15 and variance = 0.20), what is the expected return if you borrow 25% of your net worth (available capital) by selling short the risk free asset and invest the proceeds in the risky asset? 0.500 0.075 0125 0.175
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