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Your friend promises you an investing opportunity that she claims has no risk but will provide...

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Finance

Your friend promises you an investing opportunity that sheclaims has no risk but will provide a guaranteed 20% annual return.(Note: U.S. Treasuries are providing a return of 2%.) What shouldyou do? Group of answer choices Split the difference: put half ofyour investment in your friend's investing opportunity and half inU.S. Treasuries. This is possible but you should at least check outyour friend's track record and if there are investors who have beenreceiving 20% return anually, go ahead and invest. Don't invest.This sounds like a scam because it is not consistent with therelation between risk and return. This sounds like a sweet deal.Invest $100,000 with your friend.

Answer & Explanation Solved by verified expert
4.2 Ratings (506 Votes)
While making investment decisions one important aspect to consider is what one is getting in return for the investment being made Though this is one of the first things investors think of    See Answer
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