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Question 6 Not yet answered Marked out of 1.00 Flag question An investor is considering two equally risky investments. Investment A is expected to return
Question 6 Not yet answered Marked out of 1.00 Flag question An investor is considering two equally risky investments. Investment A is expected to return $1,000 per year for the next 5 years. Investment B is expected to return $6,000 at the end of 5 years. Which of the following statements is most correct if both investments A and B have the same cost? Select one: a. a risk averse investor will select investment B because it is expected to provide the most cash ($6,000 > $5,000) b. the investor may select investment A or investment B depending on the opportunity cost of money c. a risk averse investor will select investment A because it provides cash earlier than investment B d. the investor will select investment A only if the cost is less than $1,000
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