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An investor has the choice to accept option A-a guaranteed $1. inflow or option B, with the following expectations: A 35% chance of receiving $11.5
An investor has the choice to accept option A-a guaranteed $1. inflow or option B, with the following expectations: A 35% chance of receiving $11.5 million A 45% chance of receiving $25.7 million A 20% chance of receiving $13.8 million Time left 1:12:32 If the required rate of return is 15% and the risk free rate is 6%, If the investor prefers to avoid risk, which option should he accept? a $16 million Ob $46.79 million O c. $51 million Od $16.84 million $18.35 million
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