Assuming riskless debt if the return risk is with a

Question

Assuming riskless debt, if the return risk is 15% with a 60% Loan/Value Ratio, then with a 80% Loan/Value Ratio the return risk is:
(a) 11.25%
(b) 15.0%
(c) 20.0%
(d) 30.0%
(e) Cannot be determined from the information given.

Answer

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