Business 123 Introduction to Investments May I please have the solution for the following exercise? Thank you so much!   A week later, your colleague comes into your office and is really excited about this new ad he saw in the Los Angeles Times. It says that he can invest in real estate and get a 82% to 12% "preferred" return. He does not really understand what "preferred" means but it sure sounds good to him. He also likes the part that says there is no stock or bond market exposure. It also says that the investment is only offered to "accredited investors." He wonders if that means he has to take a test to invest. What can you tell him about this advertisement?

Fundamentals of Financial Management (MindTap Course List)
14th Edition
ISBN:9781285867977
Author:Eugene F. Brigham, Joel F. Houston
Publisher:Eugene F. Brigham, Joel F. Houston
Chapter8: Risk And Rates Of Return
Section: Chapter Questions
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Business 123 Introduction to Investments

May I please have the solution for the following exercise?

Thank you so much!

 

A week later, your colleague comes into your office and is really excited about this new ad he saw in the Los Angeles Times. It says that he can invest in real estate and get a 82% to 12% "preferred" return. He does not really understand what "preferred" means but it sure sounds good to him. He also likes the part that says there is no stock or bond market exposure. It also says that the investment is only offered to "accredited investors." He wonders if that means he has to take a test to invest. What can you tell him about this advertisement? 

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