Examlex

Solved

An Investor Wishes to Construct a Portfolio by Borrowing 35

question 87

Multiple Choice

An investor wishes to construct a portfolio by borrowing 35% of his original wealth and investing all the money in a stock index.The return on the risk-free asset is 4.0% and the expected return on the stock index is 15%.Calculate the expected return on the portfolio.


Definitions:

Percentage

A proportion or share expressed as a fraction of 100, used to quantify relative sizes or compare parts of a whole.

Censorship of Pornography

The practice of restricting or suppressing materials deemed sexually explicit, on the grounds of protecting public morality.

Radical Feminism

A movement that believes in the fundamental restructuring of society to eliminate male supremacy.

Liberal Feminism

A branch of feminism advocating for gender equality through legal and political reforms within the framework of liberal democracy.

Related Questions