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QUESTION 16 You have $100,000 to invest. You choose to put $150,000 into the market by borrowing $50,000. Suppose the risk-free rate is 5%, the
QUESTION 16 You have $100,000 to invest. You choose to put $150,000 into the market by borrowing $50,000. Suppose the risk-free rate is 5%, the market expected return is 10%, and the market volatility is 15%. What is the expected return, E(R), and volatility, of your investment? O E(R)=12.5% and VOLATILITY=22.5%. O E(R)=12.5% and VOLATILITY=45%. O E(R)=15% and VOLATILITY=22.5%. E(R)=15% and VOLATILITY=45%. O E(R)=12.5% and VOLATILITY=33.75%
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