Multiple Choice
Investors Al and Bea lend $100,000 to each new idea.Al's history is that he selects low-risk projects or ideas that hit 50% of the time.Bea'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 Al and Bea for them to break even?
A) Al's rate is 200% and Bea's rate is 450%.
B) Al's rate is 100% and Bea's rate is 400%.
C) Al's rate is 200% and Bea's rate is 400%.
D) Al's rate is 450% and Bea's rate is 100%.
Correct Answer:
Verified
Correct Answer:
Verified
Q5: All markets are open to all borrowers.
Q24: A simple way of stating the original
Q34: At the optimal debt-to-equity ratio,the cost of
Q41: Theoretically,the more the earnings,the more a firm
Q79: The Pecking Order Hypothesis suggests that as
Q81: Consider the Modigliani and Miller world of
Q83: Pacifica Inc.is an import-export company specializing in
Q87: Fuji Inc.is registered as a business in
Q103: With the background ideas of using the
Q108: A large public firm cannot issue which