You are an investor deciding between an investment with the Acme Returns Company, which could potentially yield a 10% expected return, or the BeTrueBusiness Company which yields 18%. At face value, which company would you invest in? Use the risk-adjusted cost of capital to account for the different risks based on each investment: country, sector, company-specific risks. Assume the risk-adjusted cost of capital for Acme Returns is 7% and for BeTrueBusiness it is 16%. This means the potential returns for Acme Returns is 3% higher than its risk-adjusted cost of capital and only 2% for BeTrueBusiness. This gap is called the spread and the goal is to maximize the spread. Based on this information, which company has the most attractive investment? When deploying capital, which company should be prioritized and why? Of the three types of risk mentioned, which one(s) do you find to be most important and why? You are an investor deciding between an investment with the Acme Returns Company, which could potentially yield a 10% expected return, or the BeTrueBusiness Company which yields 18%. At face value, which company would you invest in? Use the risk-adjusted cost of capital to account for the different risks based on each investment: country, sector, company-specific risks. Assume the risk-adjusted cost of capital for Acme Returns is 7% and for BeTrueBusiness it is 16%. This means the potential returns for Acme Returns is 3% higher than its risk-adjusted cost of capital and only 2% for BeTrueBusiness. This gap is called the spread and the goal is to maximize the spread. Based on this information, which company has the most attractive investment? When deploying capital, which company should be prioritized and why? Of the three types of risk mentioned, which one(s) do you find to be most important and why