3. Casey has $1,000 that she will not need for three months. Her bank is offering three-month...

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3. Casey has $1,000 that she will not need for three months. Her bank is offering three-month CDs at 3%.

Disney stock has been doing well lately with an average return of about 8%. Calculate the risk-return tradeoff amount. Which investment option should Casey exercise? Why? (LO 11-4)

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