Related to the Economics in Practice on p. 202: If the estate in the Chekhov play Uncle Vanya is earning 2 percent, the interest rate in suitable securities is 5 percent, and the estate is a better risk than the securities,

Question

Quizplus · Accepted Answer

The correct answer requires more information because while the securities offer a higher return (5% vs. 2%), the estate is described as a better risk. Investors consider both return and risk when making decisions, so without knowing how much more the investor values the lower risk of the estate or the specifics of their risk tolerance, it's impossible to definitively say which is the better investment.

Related to the Economics in Practice on P