**Comparison of Investment Options: ABC Corporation Stock, XYZ Mutual Fund, and Government Bonds**

1. **ABC Corporation Stock**
– **Expected Return**: High potential returns, with an average annual return of 8-12%, depending on market performance and company growth.
– **Risk Level**: High; the stock market is volatile, and company-specific risks, such as management decisions and industry changes, can significantly impact stock prices.
– **Liquidity**: High; stocks can be sold quickly, but their value may fluctuate based on market conditions.
– **Investment Horizon**: Suitable for long-term investors who can withstand market volatility.

2. **XYZ Mutual Fund**
– **Expected Return**: Moderate returns, averaging 5-7% annually, as the fund diversifies across a mix of stocks and bonds to balance risk.
– **Risk Level**: Medium; diversification helps mitigate individual asset risks, but the fund still faces market and economic risks.
– **Liquidity**: Medium; shares can be redeemed, typically within a few days, but may be subject to fees or penalties depending on the holding period.
– **Investment Horizon**: Ideal for medium- to long-term investors seeking balanced growth with moderate risk exposure.

3. **Government Bonds**
– **Expected Return**: Low but stable returns, typically around 2-4% annually, with interest payments guaranteed by the government.
– **Risk Level**: Low; government bonds are considered one of the safest investments, with minimal risk of default.
– **Liquidity**: Medium; while bonds can be sold in the secondary market, liquidity varies, and selling before maturity may result in a loss or gain depending on interest rate changes.
– **Investment Horizon**: Suitable for conservative investors focused on capital preservation and consistent income over a medium to long-term period.

**Conclusion**:
– **ABC Corporation Stock** is best for investors seeking high growth and willing to accept higher risk.
– **XYZ Mutual Fund** offers a balanced approach, with moderate risk and steady growth potential.
– **Government Bonds** provide a secure and low-risk investment option, ideal for capital preservation and steady income.