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John is considering how to invest in his RRSP this year. He asked two friends, Ashley and Brad, for advice. They recommended two investments A
John is considering how to invest in his RRSP this year. He asked two friends, Ashley and Brad, for advice. They recommended two investments A and B, respectively (see the table below). Ashley: "Brad, why did you recommend an investment that has twice as much risk but the same level of return?" Brad: "Gee, Ashley, I thought it would be a good idea for John to have some diversification." Who is right? The new investment (A or B) will be 20% of John's RRSP portfolio
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