Directions for below question:
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 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 stock market will result in a return of -2.5%, while a fall will entail a return of -+2%.
What strategy will maximize the guaranteed return to Shabnam?
- 100% in option A
- 36% in option B and 64% in option C
- 64% in option B and 36% in option C
- 1/3 in each of the three options
- 30% in option A, 32% in option B and 38% in option C