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You have invested in a business that proudly reports that it is profitable. Your investment of $ 4 500 has produced a profit of $
You have invested in a business that proudly reports that it is profitable. Your investment of $ 4 500 has produced a profit of $ 296. The managers think that if you leave your $ 4 500 invested with them, they should be able to generate $ 296 per year in profits for you in perpetuity. Evaluating other investment opportunities, you note that other long-term investments of similar risk offer an expected return of 7.6 %. Should you remain invested in this firm?
The expected return of your investment is %.
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