A risk-free investment of $10,000 will return 8%. A risky $10,000 investment has a 50% chance of defaulting and returning only $3,000. How much must the risky investment promise to
Return?
A)36.2%
B)86.0%
C)18.6%
D)37.2%

Name: A risk-free investment of $10,000 will return 8%. A risky $10,000 investment has a 50% chance of defaulting and returning only $3,000. How much must the risky investment promise to Return? A)36.2% B)86.0% C)18.6% D)37.2%
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Question

Quizplus · Accepted Answer

The Answer is B

A Risk-Free Investment of $10,000 Will Return 8