(a) If Lola invests $3000 annually into two growth mutual funds, which two types would you recommend and why?
(b) Alternatively, if Lola invests $3000 annually into two growth and income funds, which two would you recommend and why?
(c) Summarize why these four types of mutual funds might be suitable for Lola.
Lola Garcia, a single mother of a 6-year-old child, works for a utility company in Chestertown, Maryland, and is willing to invest $3000 per year in a mutual fund. She wants the investment income to supplement her retirement pension starting in approximately 30 years, and she has a moderate investment philosophy. Lola is concerned about not investing too conservatively because she expects to live a long life, given that her eldest relatives lived well into their 80s and early 90s. Advise Lola by responding to the following questions: