An investor is faced with a decision of investing $5,000. The investor is in no hurry to cash in on their gains and is considered risk-averse. Which option should they choose?

A) The 2% rate, because it is the longest payout
B) The 3% rate
C) The 6% rate, because it is the highest guaranteed return
D) The 10% rate, because the risk is worth the higher return
E) Either the 2% rate or the 6% rate, as they both offer the same total return

Question

An investor is faced with a decision of investing $5,000. The investor is in no hurry to cash in on their gains and is considered risk-averse. Which option should they choose?

A) The 2% rate, because it is the longest payout 
B) The 3% rate 
C) The 6% rate, because it is the highest guaranteed return 
D) The 10% rate, because the risk is worth the higher return 
E) Either the 2% rate or the 6% rate, as they both offer the same total return

Quizplus · Accepted Answer

The Answer of An investor is faced with a decision of investing $5,000. The investor is in no hurry to cash in on their gains and is considered risk-averse. Which option should they choose?

A) The 2% rate, because it is the longest payout 
B) The 3% rate 
C) The 6% rate, because it is the highest guaranteed return 
D) The 10% rate, because the risk is worth the higher return 
E) Either the 2% rate or the 6% rate, as they both offer the same total return

An Investor Is Faced with a Decision of Investing $5,000