Question: 9. Create your own numerical examples to show why leverage is a double-edged sword. 10. If you expect the market return this year to be

9. Create your own numerical examples to show why leverage is

9. Create your own numerical examples to show why leverage is a double-edged sword. 10. If you expect the market return this year to be 11%. A stock with a beta of 1.75 has an expected return of 15%. If the actual market return turns out to be 8%, what is your best guess as to the rate of return on the stock

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