Calculate how much investor

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Suppose that the risk-free rate is 6 percent and the expected return on the market portfolio is 15 percent. An investor with $1.5 million to invest wants to achieve a 25 percent return on a portfolio combining the risk-free asset and the market portfolio. Calculate how much this investor would need to borrow at the risk-free rate in order to establish this target expected return. Provide your final answers up to two decimal points.

Reference no: EM132538873

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