Question: please explain how to formulate by the showing formula and how the numbers are applied to it 4. Internet Inc has an expected return of

please explain how to formulate by the showing formula and how the numbers are applied to it

4. Internet Inc has an expected return of 15% and a standard deviation of 40%. What is your expected return if you buy the stock on margin? Assume a margin requirement of . 40 and a call money rate (margin loan rate) of 6.50%

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