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Suppose you have $125,000 in cash, and you decide to borrow another $18,750 at a 3% interest rate to invest in the stock market. You

Suppose you have $125,000 in cash, and you decide to borrow another $18,750 at a 3% interest rate to invest in the stock market. You invest the entire $143,750 in a portfolio P with a 16% expected return and a 26% volatility.

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