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  3. you have $115,000 to invest. you choose to put $16

You have $115,000 to invest. You choose to put $165.000 into the market by borrowing...

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Question

Accounting

You have $115,000 to invest. You choose to put $165.000 into the market by borrowing $
50.000
a. If the risk-free interest rate is 6% and the markat expected return is 8%, what is the
expected return of your investment?
b. If the market volatility is 20%, what is the volatility of your investment?
a. If the risk- free interest rate is 6% and the market expected return is 8%, what is the
expected return of your investment?
The expected return of your investinentis
%.
Round to two decimal place.)
b. If the market volatility is 20%, what is the volatility of your investment?
The volatility of your investment is
(Round to two decimal place.)
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