You have $75,000 to invest. You choose to put $ 125,000 into the market by borrowing $50,000.

a. If the risk-free interest rate is 4 % and the market expected return is 7% what is the expected return of your investment? (Round to one decimal place.)

b. If the market volatility is 17 % what is the volatility of your investment? (Round to one decimal place.)