You are making a portfolio choice between a share of stock and a bond. You intend to invest your money in one or the other $($but not both$)$ for one year.

a$.$ The stock is currently selling for $$58$ and analysts forecast that in one year it will sell for $$74.$ Calculate the one year return on holding the stock.

b$.$ The bond you are considering is currently selling at $$965$ and will be redeemed at par $($ $$1000)$ in one year. Calculate the one year return on holding the bond.

c$.$ Based on the above, which would you invest in and why?