You have OMR 12,000 in cash. You can deposit it today in a mutual fund earning 8.2 percent semiannually; or you can wait, enjoy some of it, and invest OMR 11,000 in your brother’s business in two...


You have OMR 12,000 in cash. You can deposit it today in a mutual fund earning 8.2 percent semiannually; or you can wait, enjoy some of it, and invest OMR 11,000 in your brother’s business in two years. Your brother is promising you a return of at least 10 percent on your investment. Whichever alternative you choose; you will need to cash in at the end of 10 years. Assume your brother is trustworthy and that both investments carry the same risk. Which one will you choose?



Jun 03, 2022
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