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You plan to form a porfolio by investing the $20000 you just received as an inheritance. You plan to construct an efficient portfolio by combining
You plan to form a porfolio by investing the $20000 you just received as an inheritance. You plan to construct an efficient portfolio by combining together a market portfolio index and a risk free portfolio. The market portfolio has an expected return of 12% and a stadard deviation of 9%; the risk free rate is 3%. If you want to earn an expected return of 15% on this portfolio, how much cash will you need to borrow?
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