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Investor has $40,000 and borrows additional $20,000 at 6%. He invests the entire $60,000 in risky portfolio. Return on risky portfolio is 12%. Compute the

Investor has $40,000 and borrows additional $20,000 at 6%.

He invests the entire $60,000 in risky portfolio.

Return on risky portfolio is 12%.

Compute the expected return of the investors portfolio comprising risky portfolio only.

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