Question

Read and answer the following:
Mr. Santos just received his retirement incentives amounting to P1,000,000.00. He is planning to buy a small farm land so that he can have a simple life of plant bearing trees and vegetables. However, there is an offer from his friend who wanted to borrow his money for a 10% interest per year for 5 years.

Guide questions:
1. What will be the risk and return trade-off to be faced by Mr. Santos in making decision?
2. If you were Mr. Santos, what will you choose? A small farm or a 10% interest per year
for 5 years?​

Answer 1

Answer:

hi friend how are you have a nice day friend let us be a friend please