You are thinking about investing $4565 in your friends landscaping business. Even though you know the investment

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You are thinking about investing $4565 in your friend’s landscaping business. Even though you know the investment is risky and you can’t be sure, you expect your investment to be worth $5767 next year. You notice that the rate for one-year Treasury bills is 1%. However, you feel that other investments of equal risk to your friend’s landscape business offer a 10% expected return for the year. What should you do?

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Fundamentals Of Corporate Finance

ISBN: 9781292437156

5th Global Edition

Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford

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