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John Invested $1,000 in a Risky Investment and BIll Invested

Question 104

Multiple Choice

John invested $1,000 in a risky investment and BIll invested $1,000 in a less risky investment.One year later,Bill's investment is worth $1,030.Which of the following statements is most correct?


A) If John's investment is worth less than $1,030, then John was irrational to invest in the risky project.
B) John's investment must be worth more than $1,030 because of the risk-return tradeoff, given that John's investment was more risky.
C) If John's investment is worth more than $1,030, then Bill was irrational to invest in the less risky investment.
D) The worth of John's investment cannot be determined with the information given.

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