You have $208,567 to invest in a stock portfolio (this amount is your original wealth). Your choices are Stock H, with an expected return of 16.03 percent, and Stock L, with an expected return of 9.92...


You have $208,567 to invest in a stock portfolio (this amount is your original wealth). Your choices are<br>Stock H, with an expected return of 16.03 percent, and Stock L, with an expected return of 9.92<br>percent. Legal constraints require you to invest at least $45,426 in stock L. If your goal is to create a<br>portfolio with an expected return of 20.66 percent on your original wealth, what is the minimum<br>amount you must borrow (and subsequently repay) at the risk free rate of 4.21 percent to achieve<br>your goal? Answer in $ to two decimals.<br>

Extracted text: You have $208,567 to invest in a stock portfolio (this amount is your original wealth). Your choices are Stock H, with an expected return of 16.03 percent, and Stock L, with an expected return of 9.92 percent. Legal constraints require you to invest at least $45,426 in stock L. If your goal is to create a portfolio with an expected return of 20.66 percent on your original wealth, what is the minimum amount you must borrow (and subsequently repay) at the risk free rate of 4.21 percent to achieve your goal? Answer in $ to two decimals.

Jun 09, 2022
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