Investors Al and Bea Lend $100,000 to Each New Idea

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 80% of the time.Bea'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 Al and Bea for them to break even?

A) Al's rate is 150%,and Bea's rate is 25%.
B) Al's rate is 40%,and Bea's rate is 40%.
C) Al's rate is 25%,and Bea's rate is 150%.
D) Al's rate is 30%,and Bea's rate is 150%.