Question: Can you please answer for a.), b.), and c.) (rounding to two decimal places. Suppose you have $75,000 in cash, and you decide to borrow
Can you please answer for a.), b.), and c.) (rounding to two decimal places.
Suppose you have $75,000 in cash, and you decide to borrow another $16,500 at a 3% interest rate to invest in the stock market. You invest the entire $91,500 in a portfolio J with a 10% expected return and a 28% volatility a. What is the expected return and volatility (standard deviation) of your investment? b. What is your realized return if J goes up 31% over the year? C. What return do you realize if J falls by 32% over the year? %aladeviation)ofyour investment? a. What is the expected return and volatility (standard deviation) of your investment? The expected return of your investment is %. (Round to two decimal places.)
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