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book Allison and Leslie, who are twins, just received $15,000 each for their 20th birthday. They both have aspirations to become millionaires. Each plans
book Allison and Leslie, who are twins, just received $15,000 each for their 20th 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 pest. Leste invested in the New Istun Bio-Tech Fund, which invests in small, newly issued bio-tech stocks and whose investors have earned an average of 18% 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 round intermediate calculations. Round your answers to two decimal places. All Lesle years years b. How large would Alison's annual contributions have t calculations. Round your answer to the nearest cent ecome a millionaire at the same age as Leste, assuming their expected returns are realized? Do not round intermediate Is it rational or irrational for Allson to invest in the bond fund rather than in stocks? 1. High expected returns in the market are almost always accompanied by a lot of risk. We couldn't say whether Alison is rational or irrational, just that she seems to have less tolerance for rk than Lese does 11. High returns in the market are almost always accompanied by less risk. We couldn't say whether Allison is rational or irrational, just that she seems to have more tolerance for than Leste 1. High expected returns in the market are almost always accompanied by a lot of risk. We couldn't say whether Allison is rational or irrational, just that she seems to have more trance for risk than Leslie does IV High expected returns in the market are almost always accompanied by less risk. We couldn't say whether Allison is rational or irrational, just that she seems to have less tolerance for risk than Lesle does High expected returns in the market are almost always accompanied by a lot of risk. We couldn't say whether Allison is rational or irrational, just that she seems to have about the same tolerance for risk than Leslie does
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