Marc and Julian have $30,000 they would like to invest. Based on all you know about their investment priorities, interests, and tolerance for risk, assign each type of investment a percentage of the $30,000. Your allocations should add up to 100%. what is the recommended allocation for each type of investment based on the average annual rate of return?

Average annual rate of Recommended allocation Type of investment return (percentage) Cash (includes savings accounts and CDs) 0.5% High-risk stocks and bonds 8 - 10% Low-risk stocks and bonds 3 - 4% Mutual funds 5- 7% Real estate 6 -8% Retirement 4 - 6%