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Suppose your sister offers to borrow $100 from you today and in return pay you $110 one year from today. Looking in the market for
Suppose your sister offers to borrow $100 from you today and in return pay you $110 one year from today. Looking in the market for other options for investing your money, you find your best alternative option for investing the $100 is viewed as equally risky as lending it to your sister. That option has an expected return of 8%. What should you do?
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