Mary Beth Is Risk Averse and Has $1,000 with Which

question 60

Multiple Choice

Mary Beth is risk averse and has $1,000 with which to make a financial investment.She has three options.Option A is a risk-free government bond that pays 5 percent interest each year for two years.Option B is a low-risk stock that analysts expect to be worth about $1,102.50 in two years.Option C is a high-risk stock that is expected to be worth about $1,200 in four years.Mary Beth should choose

• A)option A.
• B)option B.
• C)option C.
• D)either A or B because they are the same to her.

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Definitions:

Axonal Conductance

The process of transmitting electrical impulses along the axon of a neuron.

Nobel Prize

Prestigious awards given annually in several categories, including physics, chemistry, medicine, literature, and peace, to individuals who have made outstanding contributions to humanity.

Hermann Von Helmholtz

Hermann von Helmholtz was a 19th-century German physician and physicist who made significant contributions to the understanding of the mechanics of vision, hearing, and electromagnetism.