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Consider this scenario: A firm decides to invest half a million dollars in a start-up solar energy company rather than in a tried and true

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Consider this scenario: A firm decides to invest half a million dollars in a start-up solar energy company rather than in a tried and true company. The start-up solar energy company makes a windfall profit in two years. Which of the following BEST explains why the investor gets a high rate of return with a start-up company as compared to the rate of return if investing in a tried and true company? A half a million dollars is a lot of money. The investor was too cautious. The investor assumed a higher level of risk. The investor correctly predicted that the solar industry would take off

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