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Author Question: You want to buy $20,000 worth of shares in Tootsie Roll Industries Inc. on margin, but you only have ... (Read 100 times)

kamilo84

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You want to buy $20,000 worth of shares in Tootsie Roll Industries Inc. on margin, but you only have $10,000 of your own money to invest. The remaining $10,000 is borrowed by issuing T-Bills; assume the cost of borrowing is the risk-free rate. The weight of Tootsie Roll Industries in your portfolio is 2.0. The weight of T-Bills in your portfolio is -1.0. Assume that the expected return on Tootsie Roll is 12% and the expected return on the risk free asset (T-Bills) is 5%. What is the return on your portfolio?
◦ 17%
◦ 18%
◦ 19%
◦ 20%
◦ 21%


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Marked as best answer by kamilo84 on Apr 25, 2021

jomama

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Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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kamilo84

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Reply 2 on: Apr 25, 2021
Excellent


xoxo123

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Reply 3 on: Yesterday
Wow, this really help

 

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