Question
You have $500 000 available to invest. The risk-free rate as well as your borrowing rate is 8%. The return on the risky portfolio is
You have $500 000 available to invest. The risk-free rate as well as your borrowing rate is 8%. The return on the risky portfolio is 20%. If you wish to earn a 26% return, you should ________.
| invest $200 000 in the risk-free asset | ||
| invest $250 000 in the risk-free asset | ||
| borrow $200 000 | ||
| borrow $250 000 |
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Financial Institutions Investments And Management An Introduction
Authors: Herbert B. Mayo
8th Edition
0324178174, 9780324178173
