A Certain Investment That Costs $10,000 Today Promises to Pay

question 25

Multiple Choice

A certain investment that costs $10,000 today promises to pay you $10,500 in five years.This investment ________.

• A)is unambiguously a good investment
• B)is unambiguously a bad investment
• C)may be a good investment if the rate of return you can earn an alternative investments is very low
• D)may be a good investment if the rate of return you can earn on alternative investments is very high

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Definitions:

Stressful

Characterized by or causing mental, emotional, or physical strain or tension.

Unexpected

The state or condition of being not anticipated or foreseen, often leading to surprise.

Positive Event

An occurrence or experience that is beneficial, enjoyable, or favorable, contributing to a person's happiness or well-being.

Major Life Stressors

Significant events or changes in one's life that require a considerable adjustment, potentially causing stress or impact on mental and physical health.