Question

Before buying a stock, you must select an investing strategy. For example, you may plan to buy mediumrisk growth stocks and hold them for several years. You might decide to buy income stocks that pay high dividends. Your choices will reflect your needs and what you think about the economy and the future of certain companies. They will also reflect the risks you are willing to take.

Linda has inherited a large amount of money. She wants to invest it and is willing to take moderate risk. Which type of stock do you think she should buy? Why do you recommend this choice?