5. Choosing appropriate stocks. Assume that youve just inherited $500,000 and have decided to invest a big chunk of it ($350,000, to be exact) in common stocks. Your objective is to build up as much capital as you can over the next 15 to 20 years, and youre willing to tolerate a good deal of risk.

a. What types of stocks (blue chips, income stocks, and so on) do you think youd be most interested in, and why? Select at least three types of stocks and briefly explain the rationale for selecting each.

b. Would your selections change if you were dealing with a smaller amount of moneysay, only $50,000? What if you were a more risk-averse investor?