You have $80,000 to invest. You choose to put $140,000 into the market by borrowing...
90.2K
Verified Solution
Link Copied!
Question
Finance
You have $80,000 to invest. You choose to put $140,000 into the market by borrowing $60,000 at the risk-free rate. If the risk-free interest rate is 3%, the market expected return is 8% and the market volatility is 20%, what is the expected return of your investment? 5.86% Insufficient information 8% 11.75%
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!