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Suppose you have $10,000 in cash and you decide to borrow another $10,000 at a 6% interest rate to invest in the stock market.You invest the entire $20,000 in an exchange traded fund (ETF) with a 12% expected return and a 20% volatility.
-The volatility of your investment is closest to:
Marginal Cost
The extra expenditure required to produce one additional unit of a product or service.
Marginal Benefit
Marginal Benefit is the additional satisfaction or utility gained by consuming one more unit of a good or service.
Expected Profitability
The forecasted return on investment for a business activity or project, considering potential profits and losses.
Interest-Rate Cost
The expense associated with borrowing money, reflected as a percentage of the total amount borrowed.
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