SOLUTION: Consider the following two securities X and Y. X: Return = 20.0%; Standard Deviation = 20.0%; Beta = 1.5 Y: Return = 10.0%; Standard Deviation = 30.0%; Beta = 1.0 Risk-fr

Question 1128266: Consider the following two securities X and Y.
X: Return = 20.0%; Standard Deviation = 20.0%; Beta = 1.5
Y: Return = 10.0%; Standard Deviation = 30.0%; Beta = 1.0
Risk-free asset: Return = 5.0%
Using the data, what is the portfolio expected return if you invest 100 percent of your money in x, borrow an amount equal to half of your own investment at the risk-free rate and invest your borrowings in asset x?
Answer by Jacob727(1) (Show Source): You can put this solution on YOUR website!

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