Question

Kyle and Lyle want to pool their inheritance money to make a joint investment. They are young and are willing to accept moderate to high risk over a number of years. Which combination of investment options best suits their needs?A. Money market account and bondsB. Mutual funds and stocksC. Savings account and bondsD. Stocks and futures

Answer 1

B) Mutual funds and stocks

Step-by-step explanation:

The best option for Kyle and Lyle is to invest in stocks and mutual funds. If your investment will last several years, stocks are your number one choice. The stock market yields the highest rates of return in the long run and its risk is not that high. Mutual funds also basically invest in the stock market, although they diversify with other securities (specially bonds) in order to reduce risk.

Futures are very risky, and they usually involve short term investments. You can a lot of money, but you can also lose a lot of money.