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Part 1

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	18.37%	11.84%	6.47%	3.46%
Standard Deviation of returns	38.79%	20.01%	6.98%	3.14%

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Part 1

(Select the best choice below.)

A.

All of the investments.

B.

T-Bills only.

C.

Small Stocks and S&P 500.

D.

Corporate Bonds and S&P 500.

E.

Corporate Bonds and T-Bills.