your cousin has come to you for advice. she is getting serious about her equity investments for the first time, and she is considering four options for her money: 1) a portfolio of individual stocks that she will select, 2) a portfolio of actively managed mutUAL funds, 3) an index mutual fund, and 4) a portfolio of thought process? what do you think is a reasonable rate of return for her expect from her equity investments over time?
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