You Buy an Asset for $2,500

question 60

Essay

You buy an asset for $2,500. The asset will return $3,300 half of the time and $2,700, the other half. The expected return is 20% (a gain of $500) and the standard deviation is 12% ($300). How would using $1,250 of borrowed funds change the expected return and standard deviation specifically?

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Definitions:

State Field

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Find Unmatched

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A tool within databases and other applications that guides users through the process of creating a query, making it easier to retrieve specific data.

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