Q6.4 Assume that a wealthy individual comes to you looking for some investment advice. She is in
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Q6.4 Assume that a wealthy individual comes to you looking for some investment advice. She is in her early forties and has $250,000 to put into stocks. She wants to build up as much capital as she can over a 15-year period and is willing to tolerate a "fair amount" of risk.
a. What types of stocks do you think would be most suitable for this investor? Come up with at least three different types of stocks, and briefly explain the rationale for each.
b. Would your recommendations change if you were dealing with a smaller amount of money say, $50,000? What if the investor were more risk-averse? Explain.
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Related Book For
Fundamentals Of Investing
ISBN: 9780136117049
11th Edition
Authors: Lawrence J. Gitman, Michael D. Joehnk, Scott B. Smart, Scott J. Smart
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