You have $100,000 to invest. You choose to put $150,000 into the market by borrowing $50,000. a. If the​ risk-free interest rate is 3% and the market expected return is 10% what is the expected return of your​ investment? b. If the market volatility is 18%​, what is the volatility of your​ investment?

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A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…

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A: We require to calculate cost of equity capital in this question.

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Q: $5000 to invest for 1 year

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Portfolio Management

Portfolio management is the process by which an investor decides that how the person will invest in a variety of assets in order to get a desired return in the future. A portfolio means a pool of assets that includes securities, bonds, and other investment instruments which helps in risk minimization of the money that has been invested. In other words, it can be said that a portfolio means a combination of assets in which an investor decides to invest their money in order to get a lump sum return in the future or even a series of cash flow that the person is expecting at the end of their job life.