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Let’s suppose that you are considering investing in two investments (“A” and “B”), which have exactly the same expected future cash flows measured as a percentage of the initial investment, however investment A is cheaper. Which of these investments is more risky?

A. Investment A.

B. Investment B.

C. They have exactly the same risk.

D. Cannot tell from the information provided.

Financial Management, Finance

  • Category:- Financial Management
  • Reference No.:- M92421711

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