Final answer:
Certificates of Deposit (CDs) are the best investment option for Jan, given their stable and secure nature with fixed interest rates, which is suitable for someone risk-averse looking for a good return in under two years.
Step-by-step explanation:
Given that Jan is looking for a good return in less than two years and is risk-averse, the best investment option for Jan would most likely be Certificates of Deposit (CDs). CDs provide a stable and secure form of investment, offering fixed interest rates for the duration of the deposit term, which can range from a few months to several years. CDs are insured by the FDIC, making them a safe choice for someone who is risk-averse and seeking a guaranteed return without exposure to the volatility of the stock or bond markets.
Stocks and stock-based mutual funds are generally considered high-risk investments, especially in the short term, due to their potential for significant fluctuations in value. Bonds, while less risky than stocks, still carry some risk and may not fit Jan's criteria for low-risk investments. Compared to these options, small CDs offer a better balance between security and a moderate interest rate return, aligning with Jan's investment goals.