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James and Mary are two venture capitalists with fairly different risk profiles. On average, both investors are willing to commit $1,000,000 per project to cutting-edge
James and Mary are two venture capitalists with fairly different risk profiles. On average, both investors are willing to commit $1,000,000 per project to cutting-edge ideas and products that they think will fly. However, James is more conservative in that he tends to select lowrisk projects that he thinks have at least an 80% chance of being successful. While Mary selects high-risk projects that have at least 50% chance of doing well. Their success rates have tended to be right in line with their expectations. Based on their track records, what is the minimum rate that each investor is willing to lend $1,000,000 at? A) 100%;250% B) 100%;400% C) 25%;100% D) 200%;250% E) 100\%; 300\%
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