Related to the Economics in Practice on P

question 280

Multiple Choice

Related to the Economics in Practice on p. 522: 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,

• A) the estate will not sell because the return is lower.
• B) the securities will not sell because the risk is higher.
• C) the buyer would have no preference between the two investments.
• D) more information is needed to determine which is the better investment.

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