You Have the Choice Between Two Investments That Have the Same

question 135

Multiple Choice

You have the choice between two investments that have the same maturity and the same nominal return.Investment A pays SIMPLE interest,investment B pays compounded interest.Which one should you pick?

• A) A, because it has a higher effective annual return.
• B) A and B offer the same return, thus they are equally as good.
• C) B, because it has higher effective annual return.
• D) Not enough information.

---

Definitions:

Positive Emotion

Feelings or emotions that evoke a sense of well-being, happiness, or contentment in an individual.

Negative Emotion

Feelings or emotions that are unpleasant or undesirable, such as sadness, anger, fear, or jealousy, which can impact an individual's mental and physical well-being.

Personological Approach

An approach in psychology that focuses on the study of an individual's character and life experiences in understanding their personality.

Lexical Approach

A method in personality psychology focusing on the analysis of language and words used to describe human traits and behavior.