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You invest $10,000 in the risky asset. You also borrow $1,579 at 4% and invest it in the risk free asset. Suppose 1 year later
You invest $10,000 in the risky asset. You also borrow $1,579 at 4% and invest it in the risk free asset. Suppose 1 year later your actual return on the risky asset is 11%. What is your rate of return? Your actual rate of return on this investment is: A. 16.72% B. 9.44% C. 10.09% D. 2.11%
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