Final answer:
For a customer with a 20-year investment horizon and high risk tolerance aiming for income and growth, a diversified stock-heavy portfolio and mutual funds are recommended due to potential high returns and the advantageous effects of compound interest.
Step-by-step explanation:
The best investment recommendation for a customer with a 20-year time horizon, high risk tolerance, and an income/growth investment goal is likely to include a diversified portfolio heavily weighted towards stocks.
Given their long time horizon and high risk tolerance, they should capitalize on the potential for high returns from the stock market. The power of compound interest and the likelihood of higher returns from stocks over bonds should make this strategy advantageous.
A focus on mutual funds can also add diversity and reduce transaction costs. Considering the customer's situation, it is crucial to balance risk and return, keeping in mind the long-term benefits of sticking with the market through its ups and downs.