You can invest 3,000 at the end of each of the next 20 years into a retirement account paying 10 annual interest.
Alternatively, you can enter into a retirement plan with your employer where, for every yearly (end-of-year) payment of 3,000 you make, the firm will contribute 1,500. Your employer's plan will also last for the next 20 years. The firm guarantees a return of 7 on its retirement plan. Which option is better?
A) Invest with your employer
B) Indifferent
C) Invest on your own
Question 2
________ is the act of giving something variety.
A) Variance
B) Covariance
C) Deviation
D) Diversification
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