Margin Investing Suppose you have $10,000 in cash, and you decide to borrow another $10,000 at a 5% interest rate in order to invest $20,000 in portfolio Q, which has a 10% expected return and a 20%...

Margin Investing

Suppose you have $10,000 in cash, and you decide to borrow another $10,000 at a 5% interest rate in order to invest $20,000 in portfolio Q, which has a 10% expected return and a 20% volatility. What is the expected return and volatility of your investment? What is your realized return if Q goes up 30% over the year? What if Q falls by 10%?A