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If there are two possible $5 million investments, one in the United States that has a rate of return

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If there are two possible $5 million investments, one in the United States that has a rate of return

If there are two possible $5 million investments, one in the United States that has a rate of return of 7% and one of comparable risk in Switzerland that has a return of 9%, and the financial markets have exactly $5 million to allocate, then the financial markets should:
A) allocate $2.5 million to each of the two investment projects.
B) allocate the $5 million to the investment project in the United States.
C) allocate the $5 million to the investment project in Switzerland.
D) allocate $3 million to the investment project in Switzerland and $2 million to the investment project in the United States.

Textbook

Principles of Macroeconomics

Edition: 11^th

Authors: Case, Fair, Oster

Read 89 times

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Jesslyn

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NYC Author

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8 years ago

I was thinking the same, thank you

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