(a) In what types of investments (choose only two) might the Johnsons place the first $2000? Give reasons for your selections.
(b) In what types of investments might they place the next $4000? Why?
(c) What types of investments should they choose for the next $10,000? Why?

After nearly eight years of marriage, Harry and Belinda’s finances have improved, even though they have incurred debts for an automobile loan and a condominium. Because they did not contribute very much to their retirement plans every year, Harry’s account is currently worth only $28,000 and Brenda’s is $31,000, but they do have $12,000 in investments outside their employers’ retirement plans. Therefore, the Johnsons have decided to seriously forgo some current spending for the next three years to concentrate on getting a solid investment program under way while they still have two incomes available and before they start a family. They are willing to accept a moderate amount of risk and expect to invest between $600 and $800 per month over the next three years. Respond to the following questions: