Which one of the following individual(s) should consider purchasing housing rather than leasing or renting? Identify factors that will impact the risk of purchasing a house (The explanation is the important element of your response).

Option A:A recent college graduate searching for post-graduate employment

Option B:A thirty-year old interested in moving up the career ladder who is willing to relocate on receiving an attractive offer

Option C:A young couple with a $0 balance in their rainy day savings account and sizable monthly payments on credit cards and student loans

Option D:A couple with secure employment, a strong attachment to their current location, and funds available over and above their rainy day savings account

The appropriate mix of stocks and bonds changes as a person moves through different phases of life in hope of achieving a variety of short- and long-term financial goals.Pick a portfolio consisting of either (i) almost exclusively stocks, (ii) a much larger mix of stocks than bonds, (iii) a much larger mix of bonds than stocks, or (iv) almost exclusively bonds for each of the four individual scenarios below (Note that every portfolio option doesn't have to be used).Explain why portfolio (i), (ii), (iii), or (iv) makes sense for each person below.

Person A: Saving to place a 20% down payment on a house in 3 years

Person B: Saving to retire in 45 years

Evaluate each type of asset with regard to risk and return assuming that it makes up the majority of a 22 year-old's retirement portfolio.

A. Managed mutual funds invested in corporate bonds

B. Managed equity mutual funds invested in energy stocks

C. Equity mutualfunds indexed to the S&P 500