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You have $110,000 to invest. You choose to put $160,000 into the market by borrowing $50,000. a. If the risk-free interest rate is 4% and
You have $110,000 to invest. You choose to put $160,000 into the market by borrowing $50,000.
a. If the risk-free interest rate is 4% and the market expected return is 11% what is the expected return of your investment?
b. If the market volatility is 10%, what is the volatility of your investment?
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