An investor assumes that he can borrow money at 8% and achieve the same return on a
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An investor assumes that he can borrow money at 8% and achieve the same return on a stock index The index has an expected return of 20% with a standard deviation of 30%. Calculate his expected risk and return if he borrows 40% of his initial investment amount.
Related Book For
Applied Statistics in Business and Economics
ISBN: 978-0073521480
4th edition
Authors: David Doane, Lori Seward
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