Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Suppose you have $10,000 in cash, and you decide to borrow another $10,000 at a 3.2% interest rate to invest $20,000 in a stock ABC
Suppose you have $10,000 in cash, and you decide to borrow another $10,000 at a 3.2% interest rate to invest $20,000 in a stock ABC with a 12% expected return and a 11% volatility. What is your realized return, if ABC goes up 10% over the course of the year? Report your answer in decimal form, round to 4 decimal places.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started