Identify the risk and the return in each of the following examples:
A. Investing $500 in a CD at 4.5% interest.
B. Placing a $100 bet on an NBA game.
C. Investing $10,000 in Microsoft stock.
D. Borrowing $20,000 in student loans.
Answer:A
Identify the risk and the return in each of the following examples:
A. Investing $500 in a CD at 4.5% interest. B. Placing a $100 bet on an NBA game. C. Investing $10,000 in Microsoft stock. D. Borrowing $20,000 in student loans.