Your sister has just won $100,000 in a lottery. She wants to invest this money in order to provide for her retirement. She has asked you to give her your advice as to how he should invest this money. She is 25 years of age, in good health, is single and expects to remain so. She earns a good income and can manage her daily expenses, including mortgage repayments.

Discuss the risk and return objectives and the constraints that you should take into account in preparing an investment plan.