Alicia just graduated from college and began her first job. She would like to buy a condo and believes that she could save enough for the downpayment in about five years. What level of risk would you recommend for Alicia?

The level of risk to recommend for Alicia would be High Level Risk. This is because, the standard of living of a given country is not stagnant but fluctuates as the economic situations changes.

The economy could enter into depression making the condo she wanted to buy to be sold off at a loss or the standard of living of the economy could skyrocket (as a result of excellent economy) leading to the condo downpayment being out of her reach.

Also, the money might lose its purchasing power at the next few years leading to her savings being worthless. In summary, her plan is a High Risk Plan.