Assume That an Investor Invests $100,000 in a Business Venture

Multiple Choice

Assume that an investor invests $100,000 in a business venture. He earns an economic profit of $5,000. If the rate of return on an investment of equal risk is 10%, then the rate of return earned on the investment in the business venture is:

A) 25%
B) 15%
C) 10%
D) 5%
E) 20%