Sheila visited your office today. She is 52 years of age. She is widowed and has two children. One child recently graduated from college and the other is just graduating high school and will be leaving for the Marine Corps soon. Sheila earns $360,000 a year as the Chief Information Officer for a hospital, a position she was hired into seven years ago. She has provided you with the following financial information:

1. Annual Non-Discretionary Expenses - $240,000

2. Cash and Cash Equivalents $180,000

3. 401(k) balance of $1,250,000

Which of the following is true?

a. All individuals should have an emergency fund equal to 3 - 6 months.

b. Sheila is holding too much cash.

c. Given this information, Sheila probably has an adequate emergency fund.

d. Sheila has an emergency fund ratio of 6.0 months.