Assume you wish to buy a house in NJ in two years. You have $$100,000$ in

a bank CD that will mature tomorrow and is sufficient for a down payment.

Which is the most likely investment you should make to ensure you have

enough for a down payment and still earn some income?

$$ A$)$ Two$-$year Treasury Bill earning $4\%$ per year.

$$ B$)$ Buy $2000$ shares of JP Morgan whose current stock price is

$$50.$ The price of the shares at the end of two years will depend

greatly on the state of the economy at that time.

$$ C$)$ Lend your money to a close friend who promises you an

annual return of $12\%$ if he wins a government contract and a

loss of $4\%,$ if he does not win the government contract.

$$ D$)$ Put your money in a safe deposit box in your local bank