Susan Shaw has inherited $1.5 million from her great uncle. Susan is a 28-year-old graduate student at the University of Toronto, and she has a job at Toronto power. she does not need these funds and intends to invest them for her future retirement. after learning of this, she has been inundated with opportunities from colleagues and others looking to attract the funds. the opportunity she is assessing is to purchase a fully tenanted commercial strip mail for$1.5 million, this asset will be managed by a third party and Susan will receive semi-annual payments of $67000 after management fees.

including the commercial real estate investment above and assuming identical risk and a 10- year holding period for each investment. Returns are after-tax impacts. which investment provides the highest return for Susan.

1: Government of Canada Bond 2.45%YTM

2: Disney corp Preferred stock 4.75%

3: Toronto works Venture fund 6.75%

Answer rating: 100% (QA)

Based on the YTM Susan shaw should invest in Torntworks Venture Fund as it is yielding higher ... View the full answer