Consider a binomial tree with one period ahead T=0,1 and equal chance that the risky asset goes up or down. The expected return of the risky asset is 20% and the risk-free asset yields a return of 5%. If an investor starts with a wealth of $5000, then the expected return for not short-selling the risky asset is __________ .

Select one:

a. positive

b. negative

c. zero

d. It cannot be determined

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