A friend you have known since childhood approaches you to invest in her high-tech start up. She has been working on the technology a while, but she needs a significant sum of money to hire staff and launch the product. You have the money available and believe there's a market for the product. The investment would place you in the venture as a minority stockholder, but no extra time or work would be expected of you. At the time, risk-free Treasuries yield 4%. The S\&P500 is expected to return 8% and has a 20% standard deviation of returns. The entrepreneur has priced the potential investment to return an expected 8% going forward. Which of the following is TRUE? Negotiate to get a majority stake in the firm if you invest more money, or at least 50% Invest with your friend given the terms provided The expected return for the investment does not reflect the high risk You should counter with a lower cost to buy into the securities so they will provide a 10% return