Peter has saved $20,000 and would like to decide which of the following make investment plan is the best for his option.

1. 5-year Time deposit with annual interest rate 4%.

2. A 5-year Bond with current selling price of $1,000 per bond. The annual coupon of the bond is $30.

3. Stock of a listed company with current selling price of $100 per share. The expected annual dividend is $7 per share and the expected market price of the stock after 5 years will be $110 per share.

4. To set up an investment portfolio which consists of 40% investment in Bond and the rest of the investment in stock.

The required annual return by Peter is 4%.

Required:

(1)	Should he invest in 5-year time deposit? Why?	(11 marks)
(2)	Should he invest in 5-year bond? Why?	(13 marks)
(3)	Should he invest in stock? Why?	(13 marks)
(4)	Should he invest in this portfolio? Why?	(8 marks)
(5)	If he can only choose among the above FOUR options, which one should he choose? Why?	(5 marks)