Kyle and Lyle want to pool their inheritance money to make a joint investment. They are young and are willing to accept moderate to high risk over a number of years. Which combination of investment options best suits their needs?

Respuesta :

Mutual funds and stocks best suits their needs. 

Answer:

Mutual funds and stocks

Explanation:

Stocks are a great option if you r are willing to tolerate medium or high risk. Even though the price of stocks varies every day, on the long run, their price usually has an upward slope. Stocks provide the highest potential returns since no other investment usually performs better.

The problem with investing in stocks is that their price varies a lot, and sometimes they may lose value for several months or even a couple of years. That is why stocks are a great long term investment.

If Kyle and Lyle want to diversify their investment portfolio, besides investing in stocks they can invest some money in mutual funds. Mutual fund provide diversification, convenience, and low costs.