You plan to buy a financial product today. You expect that the financial product will give you $90 at the end of first 5 years (that is, you receive S90 starting one year from today for 5 years). Your required rate of return is 10%. If this same financial product has an actual market price of $350, what is the expected rate of return E(ty? Should you buy this financial product?
A 10.0076%; Buy
B. 10.0076%; Don't Buy
C 9.0076%, Buy
D 0.9.0076%; Don't Buy