Multiple Choice
Investors Curt and Doug lend $100,000 to each new idea.Curt's history is that he selects low-risk projects or ideas that hit 50% of the time.Doug's history is that she takes on high-risk projects that hit 20% of the time.What rate of return must each successful project pay Curt and Doug for them to break even?
A) Curt's rate is 200% and Doug's rate is 450%.
B) Curt's rate is 100% and Doug's rate is 400%.
C) Curt's rate is 200% and Doug's rate is 400%.
D) Curt's rate is 450% and Doug's rate is 100%.
Correct Answer:
Verified
Correct Answer:
Verified
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