Donna B., a highly paid executive in her 40's, has invested 20% of her 401-K in an intermediate bond fund and 60% in an S&P 500 index fund. She would like to invest the remaining 20% so as to maximize diversification while accepting some risk in pursuit of large gains. A good choice might be

Question

Quizplus · Accepted Answer

An emerging markets fund would provide diversification and has the potential for large gains, aligning with Donna's goal of accepting some risk for high returns.

Donna B, a Highly Paid Executive in Her 40's, Has Invested