Show that this leverage doubles the expected return

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Assume that for $1000 you can purchase a stock whose value is equally likely to fall to $700 or rise to $1400.(The expected value of this investment is $1050) Suppose that in addition to investing $1000 of your own, you borrow $1000 and invest a total of $2000. Show that this leverage doubles the expected return.

Please express the answer as detailed as possilbe. Giving the definition of the term would be great. Thank you so much!

Reference no: EM131196207

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