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Question 4 0.8 pts Assume all investors have a choice between investing in equity that will offer a 5% return in the form of capital

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Question 4 0.8 pts Assume all investors have a choice between investing in equity that will offer a 5% return in the form of capital gains or investing in debt that will offer a 7% return in the form of interest income. Investor X pays taxes at the rate of 45%, and Investor Y pays taxes at the rate of 30% on ordinary income. Both pay taxes at the rate of 15% on capital gain income. Which type of investment should each investor make? X should invest in debt; Y should invest in equity Both should invest in debt Both should invest in equity OX should invest in equity: Y should invest in debt Previous

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