Question 9: You have $135,000 to invest. You choose to put $185,000 into the...
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Finance
Question 9:
You have
$135,000
to invest. You choose to put
$185,000
into the market by borrowing
$50,000.
a. If the risk-free interest rate is
5%
and the market expected return is
8%,
what is the expected return of your investment?
b. If the market volatility is
13%,
what is the volatility of your investment?
You have $135,000 to invest. You choose to put $185,000 into the market by borrowing $50,000. a. If the risk-free interest rate is 5% and the market expected return is 8%, what is the expected return of your investment? b. If the market volatility is 13%, what is the volatility of your investment? a. If the risk-free interest rate is 5% and the market expected return is 8%, what is the expected return of your investment? The expected return of your investment is %. (Round to two decimal place.) b. If the market volatility is 13%, what is the volatility of your investment? The volatility of your investment is %. (Round to two decimal place.)
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