36. You are thinking about investing $5000 in your friend's landscaping business. Even though you know the

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36. You are thinking about investing $5000 in your friend's landscaping business. Even though you know the investment is risky and you can't be sure, you expect your investment to be worth $5750 next year. You notice that the rate for one-year Trea- sury bills is 1%. However, you feel that other investments of equal risk to your friend's landscape business offer a 10% expected return for the year. What should you do?

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Fundamentals Of Corporate Finance

ISBN: 9781292018409

3rd Global Edition

Authors: Berk, Peter DeMarzo, Jarrad Harford

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