The expected rate of return o and risk premium of borrow-and-invest approach and the reason why the risk of this approach double that of just investing your $1 million in the market index fund.

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Chapter 12, Problem 21QP

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To compute: The expected rate of return o and risk premium of borrow-and-invest approach and the reason why the risk of this approach double that of just investing your $1 million in the market index fund.

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