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?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter2: The Domestic And International Financial Marketplace

Section: Chapter Questions

Problem 4P

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