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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

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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 Natasha's 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 she'd like to invest about $15,000. She'll 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 doesn't wish to be a speculator, she simply wants to earn an attractive rate of return on her investments. Please answer fully and completely the following questions: 1. What investment options are open to Natasha? 2. What chance does she have of earning a satisfactory return if she invests her $15,000 in (a) bluechip stocks, (b) growth stocks, (c) speculative stocks, (d) corporate bonds, or (e) municipal bonds? 3. Discuss the factors you would consider when analyzing these alternate investment vehicles: 4. What recommendation would you make to Natasha regarding her available investment alternatives? Explain

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