Sansa owns two investments, A and B, that have a combined value of $20,000. Investment A is expected to make annual payments of $2,000 for 5 years, the expected return of 14 percent per year, and the first payment is expected later today. Investment B is expected to pay $2,000 in T years from today and has an expected return of 11 percent per year. What is T, the number of years from today that investment B is expected to pay $20,000?
A. 17.31 B. Answer is not listed or is not possible C. 6.27 D. 18.76 E. 8.62
2. Which of the following is a false statement?
Risky investments may produce large losses.
Risky investments may produce large gains.
The coefficient of variation is a risk measure.
Risk-averse investors cannot be induced to invest in risky assets.