Suppose you have $10,000 in cash and you decide to borrow another $10,000 at a

8

%

interest rate to invest in the stock market. You invest the entire $20,000 in an exchange-traded fund (ETF) with a

10

%

expected return and a 20% volatility.

Assume that the ETF you invested in returns

minus

10%.

Then the realized return on your investment is closest to:

A.

negative 11

%

B.

negative 28

%

C.

negative 25

%

D.

negative 20

%