1 fund biotech with the following performance down 50 in


Imagine that you have to invest in ONE of the following funds:

1. Fund BIOTECH with the following performance: Down 50% in Year 1, Up 60% in Year 2. Average return is 5% per year with higher than average volatility.

2. Fund UTILITIES with the following performance: Down 1% in Year 1, Up 1% in Year 2. Average return is 0% with lower than average volatility.

3. Which fund would you select and why?

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Business Management: 1 fund biotech with the following performance down 50 in
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