Question: Data R = 14.547 296; and or-4% Compute the expected rates of return and levels of risk for the Capital Allocation Line (CAL) using values

Data R = 14.547 296; and or-4% Compute the expected rates of return and levels of risk for the Capital Allocation Line (CAL) using values or (0) y = 0 (3 points) y = 0.5 (3 points) (ii) y = 1.0 (3 points) (iv) y = 2.0 (3 points) b. In a(iv) is leverage being used? What are the two outcomes of leverage? (8 points) Is the investor risk averse? Note: Answer in terms of risk and return. c In a(iv) where y = 2, what is the initial margin value if margin trading is used? (5 points) Data R = 14.547 296; and or-4% Compute the expected rates of return and levels of risk for the Capital Allocation Line (CAL) using values or (0) y = 0 (3 points) y = 0.5 (3 points) (ii) y = 1.0 (3 points) (iv) y = 2.0 (3 points) b. In a(iv) is leverage being used? What are the two outcomes of leverage? (8 points) Is the investor risk averse? Note: Answer in terms of risk and return. c In a(iv) where y = 2, what is the initial margin value if margin trading is used? (5 points)

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