While you are signing the loan document for the loan (of $1,200,000), the loan agent at PNC is offering you an additional $100,000 loan. For this additional loan, PNC is offering you a lower interest rate: 3%. Would you borrow additional $100,000 at 3%?

Note: For each question, refer back to the data and computer output given in the pdf file: " HW10 Computer Output and Questions."

New information: Suppose the Stock Funds return is 10.5% instead of 10%. Would you change your portfolio mix? i.e., you would consider increasing the investment in Stock Fund?