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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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