Question 1: A. Draw a timeline of an investment that is worth $5000 today and grows to $10,000 in 5 years. B. Calculate the required rate of return on this investment. C. Does the required rate of return decrease or increase if the investment grows for 7 years? Describe your answer in words. D. If the investment gave you payments (dividends) of $100 every year that you own the investment, is the investment worth more or less today, everything else equal? Describe your answer in words.
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