Question

The following 3 people are looking for an asset to buy to save their money. Each person has a unique financial situation and is looking for an asset that meets the needs of their situation. Match each person to the asset class that best suits their situation. (You will use each asset class EXACTLY ONCE.) Roberto, who is close to retirement and can't risk big losses in the near future [Choose [Choose] Yifei, who is just starting her career and wants her savings to grow rapidly (and doesn't mind short-term losses if they imply big long-term gain) Miguel, who is in the middle of his career at a major oil company U.S. Equities U.S. Treasury Bonds A broad set of equities and bonds from firms outside the oil industry

Answer 1

Roberto is close to retirement and doesn't want to risk, would opt for U.S. treasury bonds as those are comparatively less risky.

Yifei wants her savings to grow rapidly and doesn't mind short term losses would go for U.S. equities as they are risky and stocks are volatile which leaves room for long term gain because of inflationary pressures impacting rise in stock prices.

Miguel would opt for broad set of equities and bonds from firms outside the oil industry as his career is in the oil industry and his savings would get diversified.