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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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An investor has the choice to accept option A-a guaranteed $ ! inflow of option B, with the following expectations: - A 35% chance of receiving $71.5 million - A 45% chance of receiving $257 million - A 20%, chance of receiving $13.8 milion If the required rate of return is 15% and the nisk free rate is 6%, If the investor prefers to avoid risk which option should he accept? a. $16 million b. $46.79 million c. $51 million (d) \$16.84 million e $18.35 million

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