Your wacky benefactor $($see Self$-$Test $8\mathrm{.}3)$ now offers you the choice of two

opportunities:

a$.$ Invest $$1,000$ today and quadruple your money$$a $300\%$ return$$in one year

with no risk.

b$.$ Invest $$1$ million for one year at a guaranteed $50\%$ return.

Which will you take? Safe securities still yield $7\%.($Hint: Do you want to earn a

wonderful rate of return $(300\%),$ or do you want to be rich?$)$