Tom is considering two investment options. Option A offers a 10% annual return, while Option B offers a 5% return with lower risk. Which option should Tom choose if he seeks higher returns?

Question

A. Option A
B. Option B
C. Both options have the same return
D. It depends on the investment duration

Answer 1

A. Option A

If Tom seeks higher returns, Option A, which offers a 10% annual return, would be the better choice compared to Option B, which offers a 5% return.