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You have $ 55 comma 000 to invest. You choose to put $ 105 comma 000 into the market by borrowing $ 50 comma 000.
You have $ 55 comma 000 to invest. You choose to put $ 105 comma 000 into the market by borrowing $ 50 comma 000.
a. If the risk-free interest rate is 5 % and the market expected return is 12 % what is the expected return of your investment?
b. If the market volatility is 17 %, what is the volatility of your investment?
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