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Author Question: Which of the following investments is clearly preferred to the others for a risk-averse investor? ... (Read 95 times)

clippers!

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on: Jul 11, 2018
Which of the following investments is clearly preferred to the others for a risk-averse investor?
  Investment k
  A 14 2
  B 22 20
  C 18 16
 
  A) Investment A
  B) Investment B
  C) Investment C
  D) Cannot be determined without additional information

Question 2

If you were able to invest 2,500 at a rate of 6.40 for six months, how much money would you have at the end of that period?
 
  A) 2,349.62
  B) 2,423.65
  C) 2,578.76
  D) 2,660.00
Foundations of Finance ¦ Keown, Petty, Martin ¦ 9th Edition
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janeli

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Reply #1 on: Jul 11, 2018
Answer to Question 1

D

Answer to Question 2

C
Explanation: C) FV = PV(1 + r)n = 2,500  (1.064 )0.50 = 2,578.76.


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