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Alison and Leslie, who are twins, just received $40,000 each for their 21 th birthday. They both have aspirations to become millionaires. Each plans to

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Alison and Leslie, who are twins, just received $40,000 each for their 21 th birthday. They both have aspirations to become millionaires. Each plans to make a $5,000 annual contribution to her "early retirement fund" on her birthday, beginning a year from today. Allison opened an account with the Safety First Bond Fund, a mutual fund that invests in high-quality bonds whose investors have earned 7% per year in the past. Leslie invested in the New Issue Blo-Tech Fund, which invests in small, newly issued bio-tech stocks and whose investors have earned an average of 13% per year in the fund's relatively short history, a. If the two women's funds earn the same returns in the future as in the past, how old will each be when she becomes a millionaire? Do not reqund intermediate calculations. Round your answers to two decimal places. Allison: years Leslie: years How large would Allison's annual contributions have to be for her to become a millionaire at the same age as Leslie, assuming their expected retums are realized? Do not round intermediate calculations. Round your answer to the nearest cent. Is it rational or irrational for Allison to invest in the bond fund rather than in stocks? I. High expected returns in the market are almost always accompanied by a lot of risk. We rational or irrational, just that she seems to have less tolerance for by less risk. We couldn't say whether Allison is II. High expected returns in the market are almost always accompane for risk than Leslie does. rational or irrational, just that she seems to have more tole by a lot of risk. We couldn't say whether Allison I1. High expected returns in the market are almost always accompan for risk than Leslie does. rational or irrational, just that she seems to have more tolerance by less risk. We couldn't say whether Allison is IV. High expected returns in the market are almost always tolerance for risk than Leslie does. rational or irrational, just that she seems to have less tolerance for sisk by a lot of risk. We couldn't say whether Alliso V. High expected returns in the market are almost always accompanied same tolerance for risk than Leslie does. rational or irrational, just that she seems to have about on on

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