Question: A margin user has a situation where the riskfree rate is 6% and the risky portfolio has an expected return of 12% with a standard

A margin user has a situation where the riskfree rate is 6% and the risky portfolio has an expected return of 12% with a standard deviation of 15%. If the proportion in risky portfolio is 1.8, the expected return is:

(a) 14.6%. (b) 19.2%. (c) 21.6%. (d) 16.8%.

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