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 market 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 investment is %. 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.)
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 market 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 investment is %. 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.)
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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Question
am. 114.
Transcribed Image Text: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 market 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 investment is
%.
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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