Suppose you borrow an amount equal to your initial wealth at the risk-free rate and invest the borrowed amount along with your initial wealth in a stock portfolio with an expected return of 16 percent and a standard deviation of returns of 20 percent. The risk-free interest rate is 4 percent. What is your expected return on the portfolio that results from your borrowing and investing?

A. 12%

B. 20%

C. 28%

D. 32%

Question 2 0.35 pts Suppose you borrow an amount equal to your initial wealth at the risk-free rate and invest the borrowed amount along with your initial wealth in a stock portfolio with an expected return of 16 percent and a standard deviation of returns of 20 percent. The risk-free interest rate is 4 percent. What is your expected return on the portfolio that results from your borrowing and investing? 12 percent 20 percent 28 percent 32 percent