You want to buy $20,000 worth of shares in Tootsie Roll Industries Inc. on margin, but you only have $10,000 of your own money to invest. The remaining $10,000 is borrowed by issuing T-Bills; assume the cost of borrowing is the risk-free rate. The weight of Tootsie Roll Industries in your portfolio is 2.0. The weight of T-Bills in your portfolio is -1.0. Assume that the expected return on Tootsie Roll is 12% and the expected return on the risk free asset (T- Bills) is 5%. What is the return on your portfolio? O 17% 20% O 19% O 21% O 18%

You want to buy $20,000 worth of shares in Tootsie Roll Industries Inc. on margin, but you only have $10,000 of your own money to invest. The remaining $10,000 is borrowed by issuing T-Bills; assume the cost of borrowing is the risk-free rate. The weight of Tootsie Roll Industries in your portfolio is 2.0. The weight of T-Bills in your portfolio is -1.0. Assume that the expected return on Tootsie Roll is 12% and the expected return on the risk free asset (TBills) is 5%. What is the return on your portfolio? 17% 20% 19% 21% 18%