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Use the Information for the Question(s)below

Question 61

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 investment is closest to:


A) 40%.
B) 20%.
C) 30%.
D) 24%.

Correct Answer:

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