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Mr A currently has $10,000 cash. He wants to borrow an additional $10,000 to invest in the capital market. He is able to borrow these
Mr A currently has $10,000 cash. He wants to borrow an additional $10,000 to invest in the capital market. He is able to borrow these funds at the interest rate of 6 per cent. Assume that Mr A invests all his funds in an ETF (Exchange-Traded Fund) that offers him an expected return of 11 per cent. The ETF has a volatility of 20 per cent. The expected return of Mr A on this investment is equal to: O 4% O 7% 0000 9.1% O 8%
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