Mr.  Santos just received his retirement incentives amounting to P1,000,000.  He is planning to buy a small farm land so that he can have a simple life of planting fruit  bearing trees and vegetables. However, there is an offer from his friend who wanted to  borrow his money for a 10% interest per year for 5 years.

 
1.  What will be the risk-return trade-off to be faced by Mr. Santos in making a decision?  

2.  Support your example with an explanation and show your computation.

Answer rating: 100% (QA)

Answer Step1 I The risk tradeoff is an important strategy in investment management It is also known ... View the full answer