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