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Rashad is risk averse and has $ 4 , 5 0 0 with which to make a financial investment. He has three options. Option A
Rashad is risk averse and has $ with which to make a financial investment. He has three options. Option A is a riskfree
government bond that pays percent interest each year for two years. Option B is a lowrisk stock that analysts expect to be worth
about $ in two years. Option C is a highrisk stock that is expected to be worth about $ in four years. Rashad
should choose
either A or B because they are the same to him.
option B
option C
option A
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