Question: . You have $ 5 0 0 , 0 0 0 available to invest. You can borrow money at a rate of 7 % per

. You have $500,000 available to invest. You can borrow money at a rate of 7% per year and you earn 4% per year on bank deposits. The return on the risky portfolio is 16%. If you wish to earn a 22% return, how much money should you invest in the risky asset? The amount of dollars that you should invest in the risky asset is

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