1. If you had $1,000 to invest into the following funds, which one would have the highest value (not including any fees) at the end of the second year?
Purple Fund with Year 1 return of +10% and Year 2 return of -9.5%
Green Fund with Year 1 return of -9.5% and Year 2 return of +10%
Orange Fund with Year 1 return of 0% & Year 2 return of 0%
Yellow Fund with Year 1 return of +30% and a year 2 return of -25%

Question

1. If you had $1,000 to invest into the following funds, which one would have the highest value (not including any fees) at the end of the second year?
Purple Fund with Year 1 return of +10% and Year 2 return of -9.5%
Green Fund with Year 1 return of -9.5% and Year 2 return of +10%
Orange Fund with Year 1 return of 0% & Year 2 return of 0%
Yellow Fund with Year 1 return of +30% and a year 2 return of -25%

anonymous · Answer

Orange fund.