Consider an investment that pays off $7,000 or $15,000 per $10,000 invested with equal probability. Suppose you have $10,000 but are willing to borrow to increase your expected return. What would happen if you invested $20,000 instead of $10,000?
a) Your expected return would increase to $11,000.
b) Your expected return would increase to $12,500.
c) Your expected return would increase to $13,500.
d) Your expected return would increase to $14,000.
