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Question 9: You have $135,000 to invest. You choose to put $185,000 into the...

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Question

Finance

Question 9:

You have

$135,000

to invest. You choose to put

$185,000

into the market by borrowing

$50,000.

a. If the risk-free interest rate is

5%

and the market expected return is

8%,

what is the expected return of your investment?

b. If the market volatility is

13%,

what is the volatility of your investment?

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You have $135,000 to invest. You choose to put $185,000 into the market by borrowing $50,000. a. If the risk-free interest rate is 5% and the market expected return is 8%, what is the expected return of your investment? b. If the market volatility is 13%, what is the volatility of your investment? a. If the risk-free interest rate is 5% and the market expected return is 8%, what is the expected return of your investment? The expected return of your investment is %. (Round to two decimal place.) b. If the market volatility is 13%, what is the volatility of your investment? The volatility of your investment is %. (Round to two decimal place.)

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