WHATDOYOURECOMNEND? Shanice and Sarena are sisters, both in their early 30s. Shanice drives a leased BMW convertible, and she makes about $50,000, including tips, as a part-time bartender at two different restaurants. Although she has no employee benefits, she enjoys having flexible work hours so that she can go to the beach and the local nightspots. Currently, Shanice has $10,000 in credit card debt. She has $1,500 in a bank savings account, and two years ago she opened an individual retirement account (IRA) with a \$1,000 investment in a mutual fund. Her sister Sarena drives a paid-for Honda Civic Coupe, pays her credit card purchases in full each month, and sacrifices some of her salary by putting $200 a month into her employer's 401(k) retirement account. Over the past seven years, the 401(k) account has risen, and Sarena's 401(k) plan is now worth about $30,000. Sarena also has invested about $14,000 in a Roth IRA account that is currently invested in a mutual fund, and she plans to use that money for a down payment on a home purchase. She earns $68,000 as a manager of a restaurant, plus she receives an annual bonus ranging from $2,000 to $5,000 every January that she uses for a spring vacation in the Caribbean. Sarena's employer provides many employee benefits. What do you recommend to Shanice and Sarena on the subject of investment fundamentals regarding: 1. Portfolio diversification for Sarena? 2. Dollar-cost averaging for Shanice? 3. Investment alternatives for Sarena