Consider investment that pays off

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Reference no: EM131855860

Consider an investment that pays off $250 or $1,200 per $1,000 invested with equal probability. Suppose you have $1,000 but are willing to borrow to increase your expected return. What would happen to the expected value and standard deviation of the investment if you borrowed an additional $1,000 and invested a total of $2,000? What if you borrowed $2,000 to invest a total of $3,000?

Reference no: EM131855860

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