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Clare has $10,000 to invest. Because she is only 25 yearsold, she is not concerned about the length of theinvestment's life. What she is sensitive
Clare has $10,000 to invest. Because she is only 25 yearsold, she is not concerned about the length of theinvestment's life. What she is sensitive to is the rate of return she will earn on the investment. With the help of her financialadvisor, Clare has isolated four equally riskyinvestments, each providing a single amount at the end of itslife, as shown in the followingtable:
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