Question 1.b (5 marks)

If Ingrid decides to NOT proceed with a savings plan for the investment apartment, she will allocate most of her personal budget surplus to purchase shares to add to the share portfolio.

The shares listed on ASX can be grouped in accordance with their risk and return characteristics. Identify and discuss three common groups of shares and, given the risk profile of Ingrid, make a recommendation (with reasons). (5 marks)