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Suppose that you have the following information about four mutual funds. Each is composed of some mix of stocks and bonds. Name of fund Expected
Suppose that you have the following information about four mutual funds. Each is composed of some mix of stocks and bonds.
Name of fund | Expected annual return (%) | Standard deviation of return (%) |
Acorn Fund | 15% | 20% |
Brandon Fund | 15% | 10% |
Costco Fund | 5% | 20% |
Diversified Fund | 8% | 10% |
Which mutual fund should you pick?
Group of answer choices
A. Diversified Fund
B. Costco Fund
C. Acorn Fund
D. Brandon Fund
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