a$.$ Maya is $30$ years old, just started a new job, and is contributing regularly to her retirement account, which she won$$t touch for at least $35$ years.

Joe is $63,$ plans to retire in two years, and will start drawing from his investment portfolio at that time to cover living expenses.

Both have high percentages of their net worths invested in a broadly diversified equity index fund that has significant exposure to systematic market risk. If you had to tell one of them to change their approach and one of them to stay on the same path, explain the advice you would give to each using at least one concept from the course.

b$.$ A third person overhears your conversation with Maya and Joe and suggests that the best way to lower portfolio risk is to invest exclusively in a stable industry, like utilities. Evaluate this idea using ideas from the course.