Questioned Before Shortlisted: Investment A or B?
The company is presented with two investment opportunities: Investment A) We invest $1,000,000 and we are guaranteed to receive back $2,000,000 one year from now. Investment B) We invest $5,000,000 and we are guaranteed to receive back $6,050,000 one year from now. The risk profile for both investments is exactly the same. There is no strategic interest in pursuing one of the other. Which option would you take and why? ___ I came across the above question in an electronic application form for a certain job vacancy. I am not…
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