Although saddened by the death of her favorite aunt, Shannel was extremely surprised to learn that she was named her aunt’s only heir. A personal note in the will said, “For your own shop.” Shannel and her aunt often visited antique shops and Shannel’s dream was to own such a shop. She is expecting to receive approximately $50,000 and hopes to invest this money for her future shop, but she knows very little about stocks or investment strategies. After discussing financial planning topics with Shannel, the following issues became clear. First, the $50,000 is all the money she has saved for her goal. Second, Shannel is very cautious financially and is fearful of investing all her money at once because she has heard conflicting reports concerning stock valuation. Use your knowledge of common stock classifications and investment strategies to answer the following questions.

What role should cyclical and defensive stocks play in Shannel’s portfolio?

Answer rating: 100% (QA)

Total savings of S to achieve her goal is 50000 S is expecting the inflow of 50000 and wants to inve... View the full answer