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Your current portfolio has an expected return of 10% and a risk free rate of 1%. However, in order to generate a higher return, you

Your current portfolio has an expected return of 10% and a risk free rate of 1%.

However, in order to generate a higher return, you use leverage. You decide to lever your portfolio by .5. (y=1.5). In addition, the cost to borrow is 2%.

What is the expected return?

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