Expected Return of Stock A = .25; Return Risk Free= .05; You have $4.8 million of your own money and want to create a portfolio with an expected rate of return of 50%. In order to do so you must:
a) borrow $2,500,000 at the risk-free rate and invest all funds in Stock A.
b) borrow 225% of your money at the risk free return and invest all funds in Stock A.
c) invest 75% of your own money in the risk-free asset and the rest in stock A.
d) borrow $6,000,000 at the risk-free rate and invest all funds in Stock A.
e) borrow $500,000 at the risk-free rate and invest all funds in Stock A.