What will be the effect on total portfolio expected return and risk if you borrow money at the riskfree rate and invest in the optimal risky portfolio ...

The effect is to increase both expected return and risk The investor is leveraging his or her inv ...

What will be the effect on total portfolio expected return and risk if you borrow money at

Question:

What will be the effect on total and risk if you borrow money at the riskfree rate and invest in the optimal risky Expected Return
The expected return is the profit or loss an investor anticipates on an investment that has known or anticipated rates of return (RoR). It is calculated by multiplying potential outcomes by the chances of them occurring and then totaling these... Portfolio
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...