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You have an initial wealth of £500. You borrow £300 at 4% annual interest, and invest the total of £800 in stock XYZ. If
Posted: Wed May 18, 2022 10:07 pm
by answerhappygod
- You Have An Initial Wealth Of 500 You Borrow 300 At 4 Annual Interest And Invest The Total Of 800 In Stock Xyz If 1 (30.75 KiB) Viewed 53 times
You have an initial wealth of £500. You borrow £300 at 4% annual interest, and invest the total of £800 in stock XYZ. If XYZ' stock earns a net simple return of -27% next year, what is your net simple portfolio return (after paying off the debt)? (NB: Give your answer in decimal form rounded to 3 decimal places, e.g. enter "0.123" if the portfolio return is 12.3%.)