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

Explanation:

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.

Answer:

tech stock A and real estate Y