Alison and Leslie, who are twins, Just recolved $15,000 each for their 28 th birthday. They both have aspirations to become millonaires. Each plans to make a $5,000 anoual 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 8% per year in the post. Leslie livested in the New Issue Blo-Tech Fund, which invests in small, ne-mly issued bio-tech stocks and whose investors have eamed an average of 19% per vear in the fund's relatively short histery. 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 round intermediate calcilations. Round your answers to two decimal places. Alison:Lestiet:vearsyears b. How large would Alison's annual contributions hove to be for her to become a milionaire at the same age as Lesile, assuming their expected returns are realized? Do not round intermediate calculations. Round your answer to the nearest cent. 13 c. Is it rational or ierationsl for Ailison to imvest in the bond fund rather than in stocks? 1. High expected returns in the market are aimest always accompanied by o lot of risk. We coulont say whother A ilson is rationat or irrational, fust that she seems to have less tolerance for risk than Leslie does. II. High expected returns in the market are almost always Bscompenied by less risk: We couldn't say whether Allison is rational or irrational, just that she seems to have more tolerance for risk than Leslie does. 111. High expected retums in the market are aimost always accomponied by a lot of risk. We coulon' say whether Allisen is rational or lirational, just that she seems to have more tolerance for risk than leslie does IV. High expected returns in the market are almout always accompanied by less risk. We couldnt say whether Ailivon is rational or irrotonal, Just that she seems to have lese tolerance for risk than Lestie does. v. Hah expected returns in the market are almost always accompanied by a lot of risk. We couldon' iay whether Alison is rational or inational, juit that she seergs to have about the same tolerance for risk than leslie doet