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please answer the following question. thank you Question 1 1 pts A financial investor has $32,000 to invest. The choices have been narrowed down to
please answer the following question. thank you
Question 1 1 pts "A financial investor has $32,000 to invest. The choices have been narrowed down to the following two options. -OPTION 1: Invest in a forgeign bond that will mature in one year. This will entail an immediate brokerage fee of $134. For simplicity, assume that the bond will provide interest of $2,360, $1,570, or $1,525 over the one-year period and that the probabilities of these occurrences are assessed to be 0.3, 0.44, and 0.26, respectively. -OPTION 2: Invest in a $32,000 certificate with a savings-and-loan association. Assume that this certificate has an effective annual rate of 7.7%. Which form of the investment should the investor choose in order to maximixe her expected financial gains? Enter the expected net gain (total return-initial investment-fee) of the preferred optionStep by Step Solution
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