natasha cormier is a 28-year-old management trainee at a large chemical company. She is single, has an annual salary of $34,000 (placing her in the 15 percent tax bracket), and her monthly expenditures come to approximately $1,500. During the past year or so, natasha has managed to save around $8,000, and she expects to continue saving at least that amount each year for the foreseeable future. her company pays the premium on her $35,000 life insurance policy. Because natashas entire education was financed by scholarships, she was able to save money from the summer and part-time jobs she held as a student. Altogether, she has a nest egg of nearly $18,000, out of which shed like to invest about $15,000. Shell keep the remaining $3,000 in a bank cD that pays 3 percent interest and will use this money only in an emergency. natasha can afford to take more risks than someone with family obligations can, but she doesnt wish to be a speculator; she simply wants to earn an attractive rate of return on her investments.

Critical Thinking Questions

1. What investment options are open to natasha?

2. What recommendation would you make to natasha regarding her available investment alternatives? Explain.