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Question 5 Not yet answered Marked out of 1.00 Flag question Suppose you borrow at the risk-free rate an amount equal to your initial wealth

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Question 5 Not yet answered Marked out of 1.00 Flag question Suppose you borrow at the risk-free rate an amount equal to your initial wealth and invest in a portfolio with an expected return of 16% and a standard deviation of returns of 20%. The risk-free asset has an interest rate of 4%. Calculate the expected return on the resulting portfolio. a. 32% b. 28% c. 12% d. 20%

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