Suppose you have been out of school and gainfully employed for 5 years. You have three alternatives available for investment with your own money. Each has some element of risk, although some are safer than others. Following is a summary of the alternatives, the risks, and the returns:

a. Which would you select?

b. Why would you make this selection?

c. Of the ten principles, which one(s) is well illustrated by this problem?

d. Of the systematic economic analysis technique’s seven steps, which one(s) is well illustrated by this problem?

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Alternative You Invest, $ Chance of Success Returned to Chance of You If Success, $ Failure Returned to You If Failure, $ A $100,000 95% $110,789.47 5% $95,000 B $100,000 60% $150,000.00 40% $50,000 C $100,000 20% $510,000.01 80% $10,000