This chapter classified mutual funds into different categories based on the nature of their investments. Using the following information, pick a mutual fund category that you consider suitable for each of the investors described below and justify your choice.

a. A 25-year-old single investor with a new job that pays $30,000 a year.

b. A single parent with two children who has just received a $100,000 divorce settlement, has no job, and has not worked outside the home for the past five years.

c. A husband and wife who are both in their early 60s and retired.