Assume that for $1000 you can purchase a stock whose value is equally likely to fall to $700 or rise to $1400.(The expected value of this investment is $1050) Suppose that in addition to investing $1000 of your own, you borrow $1000 and invest a total of $2000. Show that this leverage doubles the expected return.
Please express the answer as detailed as possilbe. Giving the definition of the term would be great. Thank you so much!