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?