pected return on Stock KGB 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 your best friend and use the money along with $10,000 of your own money to purchase KGB, what is the expected return on your portfolio? A. 16.5% B. 19.5% C. 10.8% D. 9.0
pected return on Stock KGB 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 your best friend and use the money along with $10,000 of your own money to purchase KGB, what is the expected return on your portfolio? A. 16.5% B. 19.5% C. 10.8% D. 9.0
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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The expected return on Stock KGB 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 your best friend and use the money along with $10,000 of your own money to purchase KGB, what is the expected return on your portfolio?
A. 16.5%
B. 19.5%
C. 10.8%
D. 9.0
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