A friend just inherited $50,000. She informs you of her investment plans and asks for your advice.
Question:
A friend just inherited $50,000. She informs you of her investment plans and asks for your advice. “I want to put it into the stock market and use it for my retirement in 30 years. What do you think is the best plan that will provide high returns at a relatively low risk?” What answer would you give? Explain.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 100% (2 reviews)
I would advise your friend to consider a diversified longterm investment strategy that balances the potential for high returns with relatively low risk given her 30year retirement horizon Heres a sugg...View the full answer
Answered By
Anurag Agrawal
I am a highly enthusiastic person who likes to explain concepts in simplified language. Be it in my job role as a manager of 4 people or when I used to take classes for specially able kids at our university. I did this continuously for 3 years and my god, that was so fulfilling. Sometimes I've skipped my own classes just to teach these kids and help them get their fair share of opportunities, which they would have missed out on. This was the key driver for me during that time. But since I've joined my job I wasn't able to make time for my passion of teaching due to hectic schedules. But now I've made a commitment to teach for at least an hour a day.
I am highly proficient in school level math and science and reasonably good for college level. In addition to this I am especially interested in courses related to finance and economics. In quest to learn I recently gave the CFA level 1 in Dec 19, hopefully I'll clear it. Finger's crossed :)
4.80+
2+ Reviews
10+ Question Solved
Related Book For
Macroeconomics Private And Public Choice
ISBN: 9780357134009
17th Edition
Authors: James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Question Posted:
Students also viewed these Business questions
-
You have completed your first meeting with Harper and Riley Evans. You are confident that you now have most of the information you will need to prepare a comprehensive financial plan for them. Beyond...
-
The Crazy Eddie fraud may appear smaller and gentler than the massive billion-dollar frauds exposed in recent times, such as Bernie Madoffs Ponzi scheme, frauds in the subprime mortgage market, the...
-
Planning is one of the most important management functions in any business. A front office managers first step in planning should involve determine the departments goals. Planning also includes...
-
You are an information technology (IT) intern working for Health Network, Inc. (Health Network), a fictitious health services organization headquartered in Minneapolis, Minnesota. Health Network has...
-
What are the strengths of formal strategic planning? What are its weaknesses?
-
A suburban taxi company is considering buying taxis with diesel engines instead of gasoline engines. The cars average 50,000 km a year, with a useful life of 3 years for the taxi with the gas engine...
-
Explain why employers should place disclaimers in employee handbooks.
-
Focus on the role of the software vendorUnitrak Software Corporation. Was it an appropriate role? Did Unitrak act responsibly? It was 7:30 P.M. on September 22, 2006, and Leon Lassiter, Vice...
-
Chilton Corporation produced 2 , 5 0 0 units for Job 9 0 3 . The following data is provided for Job 9 0 3 for the year: Direct materials used $ 3 , 0 0 0 Direct labor costs $ 8 7 5 Actual...
-
Suppose that more expansionary monetary policy leads to inflation and higher nominal interest rates. How is this likely to affect the value of stocks? Explain.
-
The Social Security payroll tax is split equally between the employee and the employer. Would it make any difference if the entire tax were imposed on employees? Would employees be helped if all the...
-
Which of these sets of quantum numbers is allowed? If it is not, explain why. a. {5, 2, 1, 1/2} b. {3, 1, 1, 1/2}
-
A soil-bentonite slurry wall has the following characteristics: Hydraulic conductivity, K = 1 x 10-7 cm/s. 1 m wide and 20 m long, keyed into a confining layer which is at a depth of 12 ft The...
-
Would the graph of a velocity vs. time graphs of the cart on an inclined ramp change depending on which side the motion sensor is on, and if so what would it look like? The cart is gently pushed from...
-
A gearbox is needed to connect a 100 hp, 3,600 rpm motor to a load shaft rotating at angular velocity mentioned in the table. The center distance between the motor-shaft and load shaft is to be kept...
-
Let's add some dividends to the binomial model. We will have three times t = 0, 1, 2. Time periods are of length At = 1, the stock starts at So = $100, and risk-free zero rates are always r = 0.02....
-
A farmer needs to move water from two irrigation ponds to a 10acre vegetable garden (Figure 1). He has 4500ft of drip line (irrigation pipe) running across his 10acres. The client needs 0.34 gallon...
-
The Big Plastic Company manufactures a variety of plastic utensils, employing approximately 400 factory workers. Supervisors are paid a salary for a 40-hour week but receive overtime for hours worked...
-
The Alert Company is a closely held investment-services group that has been very successful over the past five years, consistently providing most members of the top management group with 50% bonuses....
-
Consider again Bob's DVD company described in Problem 4. a. Draw Bob's marginal cost curve. b. Over what range of prices will Bob produce no DVDs in the short run? c. Draw Bob's individual supply...
-
Consider again Bob's DVD company described in Problem 4. a. Draw Bob's marginal cost curve. b. Over what range of prices will Bob produce no DVDs in the short run? c. Draw Bob's individual supply...
-
A perfectly competitive firm has the following short-run total cost: Quantity TC 0 $5 1 10 2 13 3 18 4 25 5 34 6 45 Market demand for the firms product is given by the following market demand...
-
Read the below case of the Magistrates Court of Fiji Analyze the below case by (1) Identifying the relevant facts of the case (2) Identify the issues in the case (3) Identify the legislations of Fiji...
-
Read DeCSS Code on the Internet; Is it Protected Speech? By: G. Keith Roberts Do you agree that computer code and programs can merit protection under First Amendment? Why? DeCSS Code on the Internet:...
-
Puget Sound Divers provides diving services, such as underwater ship repairs, to its clients. The company's planning budget for May appears below: Puget Sound Divers Planning Budget For the Month...
Study smarter with the SolutionInn App