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Problem 6 - 8 A broker wants to sell a customer an investment costing $ 1 0 0 with an expected payoff in one year
Problem
A broker wants to sell a customer an investment costing $ with an expected payoff in one year of $ The customer indicates
that a percent return is not very attractive. The broker responds by suggesting the customer borrow $ for one year at
percent interest to help pay for the investment.
a What is the customer's expected return if she borrows the money?
Note: Round your answer to decimal place.
Customer's expected return
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