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%

Corporate Bonds and T-Bills will have return above 8%

Explanation:

given data

investments  = 4

Small Stocks

S&P 500

Corporate Bonds

T-Bills Average return

solution

we will get here first 95% confidence interval that is express as given formula that is

95% confidence interval = Return - 2 × SD to Return + 2 × SD    1

we get here as attach photo we get all the investment returns and standard deviation

so we can see here as per table given in attach only Corporate Bonds and T-Bills will have return above 8%  

so correct answer is Corporate Bonds and T-Bills

answer; schedule c;

answer; break-even analysis;