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Investors Curt and Doug Lend $100,000 to Each New Idea

Question 58

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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 80% of the time.Doug's history is that she takes on high-risk projects that hit 40% 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 150%,and Doug's rate is 25%.
B) Curt's rate is 40%,and Doug's rate is 40%.
C) Curt's rate is 25%,and Doug's rate is 150%.
D) Curt's rate is 30%,and Doug's rate is 150%.

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