Question: Question 2 : Total marks for this Question = 16 marks Bordon has a goal of purchasing a new second hand car valued at approximately

Question 2 : Total marks for this Question = 16
Question 2 : Total marks for this Question = 16 marks Bordon has a goal of purchasing a new second hand car valued at approximately $14,000 nanced from the returns generated on his investments over the next 12 months. le currently has approximately $150,000 available for investment and wishes to select any one 0': 1e following alternative investments in order to realise his goal: Ex . ected Income Ex - ected Ca - ital Ignore the effects of taxation in your calculations. a) Calculate the expected amount of income and capital generated by each investment over the ext 12 months. (4 marks) b) Rank the investments in the order of their total return (expressed as a dollar amount) from the lighest to the lowest. (4 marks) c) Briey outline the main risks attached to each investment from the various types of risk liscussed in your text book. (4 marks) d) What issues would be relevant and what specic benets could Gordon achieve if he sought 3 diversify his investments using the alternative investments provided? (4 marks)

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