Use the Information for the Question(s) Below

question 30

Multiple Choice

Use the information for the question(s) below.
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 expected return on your of your investment is closest to:

• A) 18%
• B) 20%
• C) 12%
• D) 24%

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Definitions:

Poverty

A state where an individual or community lacks the financial resources and essentials for a minimum standard of living.

Two-Year Period

A span or duration of time lasting exactly 24 months or two calendar years.

Low-Income Cutoffs

Thresholds of income set by statistics agencies, below which a family or individual is considered to be living in poverty.

Community Size

The number of individuals making up a community, influencing its social dynamics, resource availability, and interaction opportunities.