5) Suppose your friend, Katrina, is planning on saving for retirement in roughly 25-30 years, and she has a relatively high risk tolerance. She asks you for your recommendation of a savings and investment strategy. Which of the following is the best strategy to recommend?
Invest in risky but high yielding securities like stocks, mutual funds, and index funds.
Invest in safe but low yielding securities like money market funds, treasury securities, and certificates of deposits.
Invest in high risk junk bonds that have a high rate of return (if paid) but also a high risk of failure
Put your money under a mattress