Question: Suppose a certain investor has $ 2 0 , 0 0 0 to invest, but he raises an additional $ 5 , 0 0 0

Suppose a certain investor has $20,000 to invest, but he raises an additional $5,000 by borrowing. The investor then puts all $25,000 in the market portfolio. Knowing that the market risk premium is 6% and the risk-free rate is 3%. The expected return on this portfolio is equal to

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