In the lectures notes and class materials, we have studied the concept of risk and return - so we know the fundamentals. To assume additional risk, investors will require the opportunity to receive additional return. Additionally, some investors by nature are more risk averse than others - this is what drives financial markets. Let's assume that you have just inherited an unexpected large sum of $100,000 for which you have no pressing financial demands and which you decided to invest for 10 years to revisit at that time. Discuss your investment opportunities and ultimate decision. Include the following in your response:

• What categories of investments would you consider and why?
• Would you be more inclined to invest in safe options (treasury notes and bonds, CDs) or more risky investments (stock and bond markets, real estate, gold, fine art, a race horse)?
• Would diversification be part of your strategy and why/why not?
• Describe the risk/reward profile of your investment. Be specific.
• To what amount would you expect your 10 year investment to accumulate. Support your conclusion.

Explain your reasoning and support it in theory. Remember, investment approaches and risk tolerances of investors vary, so there are no inherently "wrong" answers, there are many "right answers." Your post should be about two to three well developed paragraphs long.