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Y ou have $100,000 to invest. You can invest in stock of ABC and earn 12% return. You can also borrow at the risk-free rate
You have $100,000 to invest. You can invest in stock of ABC and earn 12% return. You can also borrow at the risk-free rate of 6%. How can you invest (weight) so that you can make 15% return?
Q- How much will you invest in ABC and how much you need to borrow? (in amounts).
Q- Use the same information given in the last problem, how can you make 18% return?
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