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Identify the Risk and the Return in Each of the Following

Question 216

Essay

Identify the risk and the return in each of the following examples:
A.Investing $500 in a CD at 4.5% interest.
B.Placing a $100 bet on an NBA game.
C.Investing $10,000 in Microsoft stock.
D.Borrowing $20,000 in student loans.

Correct Answer:

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A.The risk involved is that the investor...

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