Problem $05-15($algo$)$

Consider an investment that pays off $$800$ or $$1,400$ per $$1,000$ invested with equal probability. Suppose you have $$1,000$ but are

willing to borrow to increase your expected return. What would happen to the expected value and standard deviation of the

investment if you borrowed an additional $$1,000$ and invested a total of $$2,000?$ What if you borrowed $$2,000$ to invest a total of

$$3,000?$

Instructions: Fill in the table below to answer the questions above. Enter your responses as whole numbers and enter percentage

values as percentages not decimals $($i$.$e$.,20\%$ not $0\mathrm{.}20).$ Enter a negative sign $(-)$ to indicate a negative number if necessary.