Ou Have $5 000 To Invest For The Next Year And Are Considering Three Alternatives A Money Market Fund
ou have $5,000 to invest for the next year and are considering three alternatives:
- A money market fund
with an average maturity of 30 days offering a current yield of 2.0% per year
What is the risk profile of each of these assets?
What role does your forecast of future interest rates play in your decisions?