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Investors Al and Bea lend $100,000 to each new idea. Al's history is that he selects low-risk projects or ideas that hit 50% of the
Investors Al and Bea lend $100,000 to each new idea. Al's history is that he selects low-risk projects or ideas that hit 50% of the time. Bea's history is that she takes on high-risk projects that hit 20% of the time. What rate of return must each successful project pay Al and Bea for them to break even? Explain your calculations.
A) Al's rate is 200% and Bea's rate is 450%.
B) Al's rate is 100% and Bea's rate is 400%.
C) Al's rate is 200% and Bea's rate is 400%.
D) Al's rate is 450% and Bea's rate is 100%.
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