Question Number: #Com3664

Answer the question based on the information given below:

Shabnam is considering three alternatives to invest her surplus cash for a week. She wishes to guarantee maximum returns on her investment. She has three options, each of which can be utilized fully or partially in conjunction with others.

Option A: Invest in a public sector bank. It promises a return of +0.10%.
Option B: Invest in mutual funds of ABC Ltd. A rise in the stock market will result in a return of + 5% while a fall will entail a return of –3%.
Option C: Invest in mutual funds of CBA Ltd. A rise in the stock market will result in a return of –2.5%, while a fall will entail a return of +2%.

Question: The maximum guaranteed return to Shabnam is


Options:
A.) 0.25%
B.) 0.10%
C.) 0.20%
D.) 0.30%


Answer is option : C

Question Related Topics:
Quantitative Ability
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