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. for each individual scenarios listed below (persons a-d), 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. (note that every portfolio option doesn’t have to be used). on separate lines, explain why portfolio (i), (ii), (iii), or (iv) makes sense for each person below. reference the text in your explanation.

person a: saving to place a 20% down payment on a house in 3 years

person b: saving to retire in 45 years

person c: saving to provide an initial investment for a newborn’s college fund

person d: saving to set up a diversified portfolio with a high long-term growth target