Two acquaintances have approached you about investing in business activities in which each is involved. Velterine is seeking $500 and Francis needs $755. One year from now your original investment will be returned, along with $45 income from Velterine or $48 income from Francis. You can make only one investment.
Required:
a-1. Compute the ROI of Velterine and Francis. (Round your answers to 2 decimal places.)
a-2. Which investment would you prefer?
Velterine
Francis
b. What other factors should you consider before making either investment?
Fluctuation
Risk