An investor already has some money invested in Company A. She does not have any shares of Companies B and C. She has some extra money available, and she is deciding in which company to invest this extra money right now. The investor beliefs that the following scenarios are likely to occur one year from now: a. With probability 1/2 the price of one share of Company A will be $100, one share of Company B will be $200, and one share of company C will be $50.
b. With probability 1/2 the price of one share of Company A will be $50, one share of Company B will be $400, and one share of company C will be $25.

In order to diversify her portfolio, the investor should invest in assets that have returns. In this case, the investor should use her extra money to purchase shares from company's:

Suppose you win a small lottery and have the choice of two ways to be paid: you can accept the money in a lump sum or in a series of payments over time. if you pick the lump sum, you get $2,950 today. if you pick payments over time, you get three payments: $1,000 today, $1,000 1 year from today, and $1,000 2 years from today. 1) at an interest rate of 6% per year, the winner would be better off accepting the (lump sum / payments over time), since it has the greater present value. 2) at an interest rate of 9% per year, the winner would be better off accepting the (lump sum / payments over time), since it has the greater present value. 3) years after you win the lottery, a friend in another country calls to ask your advice. by wild coincidence, she has just won another lottery with the same payout schemes. she must make a quick decision about whether to collect her money under the lump sum or the payments over time. what is the best advice to give your friend? a) the lump sum is always better. b) the payments over time are always better. c) it will depend on the interest rate; advise her to get a calculator. d) none of these answers is good advice.