Question
Problem 05-15 (algo) Consider an investment that pays off $700 or $1,600 per $1,000 invested with equal probability. Suppose you have $1,000 but are willing
Problem 05-15 (algo)\ Consider an investment that pays off
$700
or
$1,600
per
$1,000
invested with equal probability. Suppose you have
$1,000
but are willing to borrow to increase your expected return. What would happen to the expected value and standard deviation of the investment if you borrowed an additional
$1,000
and invested a total of
$2,000
? What if you borrowed
$2,000
to invest a total of
$3,000
?\ Instructions: Fill in the table below to answer the questions above. Enter your responses as whole numbers and enter percentage values as percentages not decimals (i.e.,
20%
not 0.20 ). Enter a negative sign (-) to indicate a negative number if necessary.\ \\\\table[[Invest
$1,000
,Expected Value,Percent Increase,Standard Deviation,
( Expected Return )/(( N)/(A) )
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