An investor wishes to construct a portfolio by borrowing 35% of his original wealth and investing all the money in a stock index.The return on the risk-free asset is 4.0% and the expected return on the stock index is 15%.Calculate the expected return on the portfolio.
A) 18.25%
B) 18.85%
C) 9.50%
D) 15.00%
E) 11.15%
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Q106: The expected return for a stock,calculated using
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