In 2019, Scotiabank's interest rate on GICS was 1% for a 1-yr term and 2.5% for a 10-yr term. (Scotiabank's mortgage rate for 1 yr was 3.6%, and 6% for 10 yrs.) The average annual return on the stock market (S&P 500) is about 10%. If you had $10,000 to invest, which option would you choose, and why? What does this tell you about the relationship between risk and return?
In 2019, Scotiabank's interest rate on GICS was 1% for a 1-yr term and 2.5% for a 10-yr term. (Scotiabank's mortgage rate for 1 yr was 3.6%, and 6% for 10 yrs.) The average annual return on the stock market (S&P 500) is about 10%. If you had $10,000 to invest, which option would you choose, and why? What does this tell you about the relationship between risk and return?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Transcribed Image Text:In 2019, Scotiabank's interest rate on GICS was 1% for a 1-yr term and 2.5% for a 10-yr term. (Scotiabank's
mortgage rate for 1 yr was 3.6%, and 6% for 10 yrs.)
The average annual return on the stock market (S&P 500) is about 10 %.
If you had $10,000 to invest, which option would you choose, and why? What does this tell you about the
relationship between risk and return?
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