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project Today's flow Flow in 1 year A -10 15 B 10 -8 C -15 20 D 10 -15 Question 1: Suppose the risk-free interest
project | Today's flow | Flow in 1 year |
A | -10 | 15 |
B | 10 | -8 |
C | -15 | 20 |
D | 10 | -15 |
Question 1: Suppose the risk-free interest rate is 10%. Of the 4 projects above, Where should you invest if you only have to choose one?
Question 2: Suppose the risk-free interest rate is 10%. Of the 4 projects above, where should you invest if you have to choose two?
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