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You decided to invest $2,000 in stocles. If investing all into a single stock, you would love most of your money if that stock tanks.
You decided to invest $2,000 in stocles. If investing all into a single stock, you would love most of your money if that stock tanks. Though not completely, you want to avoid this risk by splitting the investment up into two ETFs in different (and to some extent independent) sector ETF #1: $800, cost per unit is $50 EFT #2: $1200, cost per unit is $100. In the following two years, you make no changes in the investment portfolio. At the end of the second year, you decide to cash out. You are charged at $0.01 for each unit sold. How much money do you have and the end of two years after selling, if the average annual growth is equivalent to an interest rate of 2% and 6% for ETF I and ETF 2, respectively
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