QUESTION IMAGE
Question
variable investment options table
the table shows different variable investment options with their characteristics.
| investment options | initial investment | expected annual return | risk level | liquidity |
|---|---|---|---|---|
| health stock b | $20,000 | 10% | medium | high |
| bond fund x | $20,000 | 5% | low | medium |
| real estate y | $20,000 | 12% | high | low |
if liquidity is not a concern and the investor is willing to take on high risk for a good return, which two investment options from the table should they consider?
- health stock b and bond fund x
- tech stock a and real estate y
- tech stock a and health stock b
- bond fund x and index fund z
Step1: Analyze Risk Requirement
The investor wants high - risk investments. So we look at the "Risk Level" column. Tech Stock A has a "high" risk level, Real Estate Y has a "high" risk level, Health Stock B has a "medium" risk level, Bond Fund X has a "low" risk level.
Step2: Analyze Liquidity Requirement
Liquidity is not a concern, so we can consider investments with any liquidity level. But we need to focus on high - risk ones. Tech Stock A (high risk, high liquidity) and Real Estate Y (high risk, low liquidity) are high - risk. Health Stock B is medium risk, Bond Fund X is low risk. So the combination of tech stock A and real estate Y meets the high - risk and (liquidity not a concern) criteria.
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tech stock A and real estate Y