Question
You currently own a business that earns 13% and has a 8% risk. You're considering investing, and you're pretending to be the kind of investor
You currently own a business that earns 13% and has a 8% risk. You're considering investing, and you're pretending to be the kind of investor from each of the following scenarios: is indifferent to risk; seeks to risk; and is risk-averse. Based on the information in the table, Indicate and explain in which company or companies you would invest: Investment Expected Return Risk Index expected Zero Inc. 10% 10% Batman Enterprises 13% 12% Spiderman Limited 20% 6%
In other words, for each of the three scenarios mentioned, indicate which or Which of the companies would you choose? Applying the knowledge acquired in the study of the module, you must explain the reason for your decision to select the company or companies Business. 1. Indifferent to risk I would invest in ____________________________________ because __________________________________________________________ ________________________________________________________________
2. Looking to risk I would invest in _______________________________________ because __________________________________________________________ ________________________________________________________________
3. Is risk averse I would invest in __________________________________ because ___________________________________________________________ ______________________________________________________________________
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