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You have $20,000. You plan on purchasing a house in one year, but you will need to have $22,500 for the downpayment. Which of the
You have $20,000. You plan on purchasing a house in one year, but you will need to have $22,500 for the downpayment. Which of the following is a good investment opportunity to ensure you have the money necessary to make your downpayment in a year?
A portfolio with an expected return of $27,000 and a standard deviation of 20%.
A portfolio with an expected return of $24,000 and a standard deviation of 10%.
A portfolio with an expected return of $30,000 and a standard deviation of 15%.
All of these options would be a good investment.
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