Amanda is 20-years-old and looking to invest $1000. She has always played it safe with very low-risk investments, but now she is ready to take a bigger risk to see if she can earn a bigger return on her investment. She is comfortable having this money tied up for several years, but she would like to withdraw the money sometime in the next 5 to 10 years. Which type of investment will BEST fit Amanda’s needs?

money market mutual fund

certificate of deposit

bond

401k

Amanda is 20-years-old and looking to invest $1000. She is comfortable having this money tied up for several years, but she would like to withdraw the money sometime in the next 5 to 10 years.

Solution,

Know that the duration of the certificate of deposit has a period of seven days to one year.

Know that bonds have a duration depending upon the issuer but there is no gain in that period.

Therefore, mutual funds in the money market are the best option as it shall give a high return in the said time period.

Hence, the correct option is (A) i.e. money market mutual funds.

Answer By: https://brainly.in/app/profile/38246472/answers (Thus the work is not mine).