(Solution) - Assume you have 2000 available for investment for a 5 year -(2025 Original AI-Free Solution)

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Academic Level: Undergrad. (yrs 3-4)

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Assume you have $2000 available for investment for a 5-year period. You wish to invest the money not just spend it on fun things. There are obviously many alternatives available. You should be willing to assume a modest amount of risk of loss of some or all of the money if this is necessary, but not a great amount of risk (no investments in poker games or at horse races). How would you invest the money? What is your minimum attractive rate of return? Explain.