Suppose you have 100000 in cash and you decide to borrow


Suppose you have $100,000 in cash, and you decide to borrow another $15,000 at a 4% interest rate to invest in the stock market.

You invest the entire $115.000 in a portfolio J with a 15% expected return and a 25% volatility.

What is the expected return and volatility (standard deviation) of your investment?

What is your realized return if J goes up 25% over the year? What rerun do you realize if J falls by 20% over the year?

Request for Solution File

Ask an Expert for Answer!!
Financial Management: Suppose you have 100000 in cash and you decide to borrow
Reference No:- TGS02796232

Expected delivery within 24 Hours