Upon reviewing your finances, you realise that you have $10,000 in savings that you do not currently need to use. You decide to invest your savings in order to earn some returns and are currently considering three options: shares (via an exchange traded fund, ETF), bonds and units in a property trust. You may ignore tax implications and risk/volatility considerations for now. Assume your investment horizon is one year. After some careful analysis, you have computed the following performance metrics: Option Type Performance A Shares If you invest $10,000 in shares, your investment will be worth $10,725 after one year. B Bonds If you invest $10,000 in bonds, you will earn $600 of income after one year. C Property If you invest in the property trust, you will earn 3.00% real interest rate after one year. A) Assuming your objective is to achieve the highest possible return, what is the best investment option? Also what is the real rate of return if inflation is 2% per year? The best option is (Type 'A' for Shares, 'B' for Bonds or 'C' for Property) The real interest rate is percent (Enter your response rounded to two decimal places ignoring any % signs)

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