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You are choosing between these four investments and you want to be 95% certain that you do not lose more than 8.00% on your investment.

You are choosing between these four investments and you want to be 95% certain that you do not lose more than 8.00% on your investment. Which investments could you choose?

Small Stocks

S&P 500

Corporate Bonds

T-Bills

Average return

18.04%

11.71%

6.16%

3.39%

Standard Deviation of returns

39.25%

19.76%

6.36%

3.12%

A. All of the investments.

B. Corporate Bonds and T-Bills.

C. Small Stocks and S&P 500.

D. Corporate Bonds and S&P 500.

E. T-Bills only.

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