Question: Sarah Mix is a single 30 year old business owner who has

Sarah Mix is a single, 30-year-old business owner who has $500 a month to invest. This money is in excess of the contribution to her company pension plan. Sarah hears that many of her friends are investing in mutual funds. Her grandfather, Grandpa Russ, invested in the stock market, and lost everything. He advises her to invest only in bonds. Her uncle, Sam, thinks that she should invest in stock mutual funds, but only in conservatively managed funds that invest in U.S. blue-chip stocks. Sarah notes that her Grandpa is 70 years old and her uncle is 55 years old. Her friend Jane, who is also 30 years old, said she only invests in small capital growth funds.
a. What would you advise Sarah to invest in?
b. Why do you think these people have different investment strategies?

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  • CreatedJuly 31, 2015
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