Question: Need help with this finance hw. Please show work in excel You have $1,000 of your own money to invest. You can borrow or lend
Need help with this finance hw. Please show work in excel
You have $1,000 of your own money to invest. You can borrow or lend at the risk-free rate of 2%. You want to invest in a mutual fund that has an expected return of 10% and a standard deviation of 30%. Suppose you borrow $1,000 and combine that with your own money to invest $2,000 in this mutual fund. What is the expected return and standard deviation of the portfolio that you have just created?
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
