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ALL ARE CORRECT, JUST NEED THE ANSWER TO "C" B11-33 (book/static) Question Help Suppose...

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Finance

imageALL ARE CORRECT, JUST NEED THE ANSWER TO "C"

B11-33 (book/static) Question Help 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. a. What is the expected return and volatility (standard deviation) of your investment? b. What is your realized return if J goes up 25% over the year? c. What return do you realize if J falls by 20% over the year? a. What is the expected return and volatility (standard deviation) of your investment? The expected return of your investment is 16.65 %. (Round to two decimal places.) The volatility (standard deviation) of your investment is 28.75 %. (Round to two decimal places.) b. What is your realized return if J goes up 25% over the year? Your realized return if J goes up 25% over the year is 28.15 %. (Round to two decimal places.) c. What return do you realize if J falls by 20% over the year? The return you realize if J falls by 20% over the year is %. (Round to two decimal places.)

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