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You chose your portfolio following the advice of the modern portfolio theory. Suppose you had...

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Finance

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You chose your portfolio following the advice of the modern portfolio theory. Suppose you had $100,000 in cash and you borrowed another $10,651 from the bank at the annual risk-free rate of 1%. You invested your cash and the amount you borrowed in a risky portfolio with an annual expected return of 20% and standard deviation of 34%. What return do you earn if the risky portfolio you invested in goes up by 16% over a year? Report your answer in decimal form rounded to 4 decimal places

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