Alex is a working professional and has managed to save a small amount of money from his earnings. he wants to invest in something that is customized to his risk appetite. which financial institution should he choose? a. hedge funds b. mutual funds c. life insurance companies d. credit unions e. pension funds

Since the question doesn’t mention the level of risk that Alex would be able to stomach, it can be assumed that the financial institution that can satisfy Alex’s risk appetite would be (B) mutual funds.

Mutual funds are investment programs where clients can hold portfolio with diverse instruments, and thus the risks are much more diversified than other types of investments. Thus if Alex would rather have a mixture of high-risk, medium-risk, and low-risk products, a mutual fund firm would be better equipped to handle his needs.

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