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Please show work 2. You have $1,000,000 available to invest. The risk-free rate as well as your borrowing rate is 8%. The return on the
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2. You have $1,000,000 available to invest. The risk-free rate as well as your borrowing rate is 8%. The return on the risky portfolio is 16%. If you wish to carn a 22% return, you should A) invest $750,000 in the risk-free asset B) borrow $750,000 C) invest $375,000 in the risk-free asset D) borrow $125,000 E) borrow $375,000Step by Step Solution
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