Investment companies attempt to explain to investors the nature of the risk the investor incurs when buying shares in their mutual funds. For example, Vanguard carefully explains interest- rate risk and offers alterna-tive funds with different interest- rate risks. Go to http:// personal. vanguard. com/ us/ funds.

a.. Select the bond fund you would recommend to an investor who has a very low tolerance for risk and a short investment horizon. Justify your answer. b. Select the bond fund you would recommend to an investor who has a very high tolerance for risk and a long investment horizon. Justify your answer.