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Time Taken:0:01:48 Jordan Witt: Attempt 1 You have $10,000 available to invest. The risk-free rate, as well as your borrowing rate, is 2%. The return
Time Taken:0:01:48 Jordan Witt: Attempt 1 You have $10,000 available to invest. The risk-free rate, as well as your borrowing rate, is 2%. The return on the risky portfolio is 13%. You decide to form a complete portfolio with expected return of 10%, you should a) invest $1,250 in the risk-free asset and $8,750 in risky portfolio. b) borrow $1,250 and invest $8,750 in the risky portfolio ) invest $2,727 in risk-free asset and $7,273 in risky portfolio. d) invest $0 in risk-free asset and $10,000 in the risky portfolio. e) borrow $8,750 and invest $1,.250 in the risky portfolio. Next Page Page 3 of 14 Previous Page 119-010016
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