Reno Has a Goal of Purchasing a New Speedboat Valued

Reno has a goal of purchasing a new speedboat valued at approximately $14,000 financed from the returns generated on his investments over the next 12 months.
He currently has approximately $150,000 available for investment and wishes to select any one of the following alternative investments in order to realise his goal:
$\begin{array}{lcc}&\text { Expected Income } & \text { Expected Capital } \\\text { Details } & \text { return (\% p.a.) } & \text { return (\% p.a.) } \\\text { 1 year unsecured note } & 10 & 0 \\1 \text { bedroom rental property } & 4 & 8 \\\text { Shares in Australian bank } & 3 & 12\end{array}$
Ignore the effects of taxation in your calculations.
(a) Calculate the expected amount of income and capital generated by each investment over the next 12 months.
(b) Rank the investments in the order of their total return (expressed as a dollar amount) from the highest to the lowest.
(c) Briefly outline the main risks attached to each investment from the various types of risk discussed in this chapter.
(d) What issues would be relevant and what specific benefits could Reno achieve if he sought to diversify his investments using the alternative investments provided?