You have $190,000 to invest. You choose to put $240,000 into the market by borrowing $50,000....
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You have $190,000 to invest. You choose to put $240,000 into the market by borrowing $50,000. a. If the risk-free interest rate is 4% and the market expected return is 7% what is the expected return of your investment? b. If the market volatility is 19%, what is the volatility of your investment? a. If the risk-free interest rate is 4% and the market expected return is 7% what is the expected return of your investment? The expected return of your investment is %. b. If the market volatility is 19%, what is the volatility of your investment? The volatility of your investment is %. You have $190,000 to invest. You choose to put $240,000 into the market by borrowing $50,000. a. If the risk-free interest rate is 4% and the market expected return is 7% what is the expected return of your investment? b. If the market volatility is 19%, what is the volatility of your investment? a. If the risk-free interest rate is 4% and the market expected return is 7% what is the expected return of your investment? The expected return of your investment is %. b. If the market volatility is 19%, what is the volatility of your investment? The volatility of your investment is %.
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a To calculate the expected return of your investment we can use the concept of the capital a... View the full answer
Related Book For
Financial reporting, financial statement analysis and valuation a strategic perspective
ISBN: 978-0324789416
7th Edition
Authors: James M Wahlen, Stephen P Baginskl, Mark T Bradshaw
Posted Date:
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