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

If Tom is seeking higher returns, he should choose A. Option A, as it offers a 10% annual return compared to the 5% return of Option B.