Question
Comparison of returns. WG Investors is looking at three different investment opportunities. Investment one is a five-year investment with a cost of $125 and a
Comparison of returns. WG Investors is looking at three different investment opportunities. Investment one is a five-year investment with a cost of $125 and a promised payout of $250 at maturity. Investment two is a seven-year investment with a cost of $125 and a promised pay- out of $350. Investment three is a ten-year investment with a cost of $125 and a promised payout of $550. WG Investors can take on only one of the three investments. Assuming that all three investment opportunities have the same level of risk, calculate the annual return for each invest- ment, and select the best investment choice
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