2-9. Suppose your wealthy aunt has given you a gift
of $25,000. You have come up with three options
for spending (or investing) the money. First, you’d
like (but do not need) a new car to brighten up
your home and social life. Second, you can invest
the money in a high-tech firm’s common stock. It is
expected to increase in value by 20% per year, but this
option is fairly risky. Third, you can put the money
into a three-year certificate of deposit with a local bank
and earn 6% per year. There is little risk in the third
option. (2.1)