Question

Consider the returns on four investment options: A, B, C, and D. All four investment options require the same principal amount, and the returns on the investments are considered over the same time frame. The present value of the return on investment A is greater than the present value of the return on investment B, which is greater than the present value of the return on investment C. The present value of the return on investment D is the lowest. A rational investor will choose to invest in:
a. option A.
b. option B.
c. option C.
d. option D.

Answer

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