Use the Information for the Question(s) Below

question 74

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 volatility of your of your investment is closest to:

• A) 40%
• B) 20%
• C) 30%
• D) 24%

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Definitions:

Process

Denotes a series of actions or steps taken to achieve a particular end.

Referent

In leadership and influence, a referent power base that relies on followers' identification and liking towards the leader.

Process Definition

The formal documentation of the steps, methods, and procedures involved in completing a particular process.

Reciprocal

Involving a mutual exchange or sharing between two or more parties, often characterized by interdependence and a balance of give and take.