subject
Business, 02.08.2021 19:10 blacee01

Suppose you have just inherited $10,300 and are considering different options for investing the money to maximize your return. If you are risk-neutral (that is, neither seek out or shy away from risk), which of the following options should you choose to maximize your expected return? A. Invest the money in a corporate bond, with a stated return of 6%, but there is a chance of 1 1% the company could go bankrupt
B. Hold the money in cash and earn zero return.
C. Put the money in an interest-bearing checking account, which earns 1%. The FDIC insures the account against bank failure.
D. Loan the money to one of your friends' roommates, Mike, at an agreed upon interest rate of 7%, but you believe there is a 7% chance that Mike will leave town without repaying you.

ansver
Answers: 3

Another question on Business

question
Business, 22.06.2019 08:50
Suppose that in an economy the structural unemployment rate is 2.2 percent, the natural unemployment rate is 5.3 percent, and the cyclical unemployment rate is 2 percent. the frictional unemployment rate is percent and the actual unemployment rate (in this economy) is percent.
Answers: 2
question
Business, 22.06.2019 11:00
In each of the following cases, find the unknown variable. ignore taxes. (do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.) accounting unit price unit variable cost fixed costs depreciation break-even 20,500 $ 44 $ 24 $ 275,000 $ 133,500 44 4,400,000 940,000 8,000 75 320,000 80,000
Answers: 3
question
Business, 22.06.2019 20:30
Before the tools that have come from computational psychiatry are ready to be used in everyday practice by psychiatrics, what is needed
Answers: 1
question
Business, 22.06.2019 23:00
Which of the following is true of website content? it should be refreshed periodically to keep customers coming back. once the content has been written and proofread it shouldn't be changed. grammatical errors are not a problem because the customer visits the site to purchase a product, not check the site's grammar. it should be limited to text and shouldn't include multimedia.
Answers: 1
You know the right answer?
Suppose you have just inherited $10,300 and are considering different options for investing the mone...
Questions
question
Chemistry, 27.07.2019 22:30
Questions on the website: 13722361