Karim is analysing purchasing Amazing stocks which price is projected to grow based on market analysts' perspectives. The current price is $41 per share and the projected price in a year is $43 per share. The other best investment alternative for Karim is a risk-free asset with a 7% return. If you believe that the analysts' projections are accurate, should Karim purchase this stock now and sell it in a year?

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No, because the stock's projected return is lower than that of the risk-free asset.

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No, because it is always better to avoid risk.

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Yes, because the stock's projected return is higher than the risk-free asset.

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Yes, because the stock price is higher at the end of the first year.

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Karim is analysing purchasing Amazing stocks which price is projected to grow ...

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