question 1 of 10: two investors have net worths of $12 million (investor a) and $1 million (investor b)…

question 1 of 10: two investors have net worths of $12 million (investor a) and $1 million (investor b). they set their investment limits at 2% and 30% of their net worth, respectively. which has the higher investment limit?\na) investor a\nb) investor b

question 1 of 10: two investors have net worths of $12 million (investor a) and $1 million (investor b). they set their investment limits at 2% and 30% of their net worth, respectively. which has the higher investment limit?\na) investor a\nb) investor b

Answer

Explanation:

Step1: Calculate Investor A's limit

$12\times2% = 12\times0.02=0.24$ (million dollars)

Step2: Calculate Investor B's limit

$1\times30%=1\times0.3 = 0.3$ (million dollars)

Step3: Compare the limits

Since $0.24<0.3$, Investor B has a higher investment - limit.

Answer:

b) Investor B