Consider the following article.

To invest well, you need to find investments that fit your financial goals, investing time frame and risk tolerance.

Types of investments and returns

Investments can be classified as defensive or growth investments.

Defensive investments

Defensive investments are lower risk investments. They aim to provide income and protect the capital invested. Defensive investments include cash and fixed interest investments. They're typically used to:

• Meet short-term financial goals (up to two years).
• Diversify a portfolio.

Defensive Investment	Characteristics	Risk, return and investing time frame
Cash	Includes bank accounts, high interest savings accounts and term deposits. Used to protect wealth and diversify a portfolio.	Average return over last 10 years: 3% per year Risk: very low risk of losing money Time frame: short term, 03 years
Fixed interest	Includes government bonds, corporate bonds, debentures and capital notes. Used to earn a steady rate of income and diversify a portfolio.	Average return over last 10 years: 3.5% per year Risk: low risk of losing money Time frame: short term, 13 years

Growth investments

Growth investments are higher risk and offer a higher potential return compared to defensive investments. They aim to give capital growth and some provide income (for example, dividends for shares or rent for property). But, the price of growth investments can be volatile over short periods of time.

Growth investments are typically used to:

• Earn a higher rate of return (but this comes with higher risk).
• Meet longer term financial goals, five years or more.

Growth investments include shares, property and alternative investments.

Growth Investment	Characteristics	Risk, return and investing time frame
Property	Includes investing in residential and commercial property. Used to earn a steady rate of income (rent) and offer capital growth.	Average return over last 10 years: 6.3% per year Risk: medium to high Time frame: long term, at least 5 years
Shares	Investing in a company. You get to vote on management and share in the profits. Offer capital growth and some provide income (dividends).	Average return over last 10 years: 6.5% per year (Australian shares) Risk: high Time frame: long term, at least 5 years
Alternative investments	Includes private equity, infrastructure, commodities and other investments that dont fall into the investment classes above. Most aim to provide capital growth. Some have the potential for steady income.	Most alternative assets are high risk. Returns differ depending on the type of alternative investment.

(Source: https://moneysmart.gov.au/how-to-invest/choose-your-investments)

(a) Using the points labelled A to E, identify where the investments mentioned in the article (cash, fixed interest, property, shares and alternatives) are most likely located on the following risk-return tradeoff.

(b) Where are you (that is, your group) located on the risk-return tradeoff? Explain your answer.