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Ch 1 Application Exercises Must post first. Subscribe Ch 1 - Application Exercise Risk/Reward Tradeoff - slide 7: In 2019, Scotiabank's interest rate on GICs was 1% for a 1-yr term and 2.5% for a 10-yr a term. (Scotiabank's mortgage rate for 1 yr was 3.6%, and 6% for 10 yrs.) The average annual return on the stock market (S&P 500) is about 10%. If you had $10,000 to invest, which option would you choose, and why? What does this tell you about the relationship between risk and return