You have $55,000 to invest. You choose to put $105,000 into the market by borrowing $50,000. a.

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You have $55,000 to invest. You choose to put $105,000 into the market by borrowing $50,000.

a. If the risk-free interest rate is 3% and the market expected return is 11%, what is the expected return of your investment?

b. If the market volatility is 16%, what is the volatility of your investment?

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Related Book For  answer-question

Corporate Finance The Core

ISBN: 9781292158334

4th Global Edition

Authors: Jonathan Berk, Peter DeMarzo

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