Question: Suppose a stock is expected to have a return 5% with volatility of 5%. Buying on margin would I. Increase the expected return of the

Suppose a stock is expected to have a return 5% with volatility of 5%. Buying on margin would I. Increase the expected return of the investor (his equity return) II. Increase the risk of the investor (volatility of his equity return) III. Increase the expected return but do not increase the risk of the investor II and III only I and III only I and II only I, II, and

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