The expected return on Stock A is 12% and its variance is 0.15. The current...
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The expected return on Stock A is 12% and its variance is 0.15. The current money market fund has a sure rate of 3%. If you borrow $5,000 of the money market fund from a friend and use the money along with $10,000 of your own money to purchase A, what is the expected return on your portfolio?
A. 16.5%
B. 10.8%
C. 9.0%
D. 19.5%
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