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An investor who is considering to equally risky investments.
Investment A expected to return $1,000 per year for the next five years. Investment B is expected to return $6,000 at the end of five years. Which of the following statements is most correct if both investment A and investment B have the same cost?
a risk averse investor will select investment A because it provides cash earlier than investment B .
a risk averse investor will select investment B because it is expected to provide the most cash 6000 is greater than 5000 .
the investor will select investment A only if the cost is less than 1000.
the investor will select investment A or investment B depending on the opportunity cost of money
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