You have $258,521 to invest in a stock portfolio (this amount is your original wealth). Your choices are Stock H, with an expected return of 15.28 percent, and Stock L, with an expected return of 9.35 percent. Legal constraints require you to invest at least $52,393 in stock L. If your goal is to create a portfolio with an expected return of 18.52 percent on your original wealth, what is the minimum amount you must borrow (and subsequently repay) at the risk free rate of 4.95 percent to achieve your goal? 

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To find the minimum amount you must borrow to achieve your goal you can set up th... View the full answer