Question
Suppose you are advising two groups of client investors. First group is a pension fund of 200 workers in US manufacturing. The workers are all
Suppose you are advising two groups of client investors. First group is a pension fund of 200 workers in US manufacturing. The workers are all 40 years old and have $25,000 in savings. The second group is a single individual with no job and 40 years old, but with a trust fund of $5million. Neither group need to access the funds for the next 25 years, and both groups have the same level of aversion to risk. Which group has the higher capacity to buy stocks in the US market? A) Pension fund B) Individual investor C) Same D) No idea, no clue, cant tell from information given
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