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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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